Trump exempts smartphones and computers from new tariffs

US President Donald Trump's administration has exempted certain electronic devices from tariffs. This includes smartphones and computers, which faced a 125% tax on Chinese imports.

US Customs and Border Patrol announced these goods would be excluded from the 10% global tariff. This is the first major relief from Trump's tariffs on China. A trade analyst called it a "game-changer scenario."

While traveling to Miami, Trump said he would provide more details next week. He mentioned, "We'll be very specific," while discussing the exemptions. He also noted that the US is collecting significant revenue.

The decision followed concerns from US tech companies about rising gadget prices. Many of these products are made in China. The exemptions, backdated to April 5, include semiconductors, solar cells, and memory cards.

Dan Ives from Wedbush Securities called this news a "dream scenario for tech investors." He stated that excluding smartphones and chips changes the game regarding China tariffs. Major tech firms like Apple and Nvidia can now feel relieved.

The White House explained that these exemptions aim to give companies time to move production to the US. Press Secretary Karoline Leavitt stated that Trump wants America to rely less on China for critical technologies.

Trump is currently at his Florida home but expressed comfort with high tariffs on China. He believes something positive will come from this situation and praised his relationship with Chinese President Xi Jinping.

These electronic goods still face a 20% tariff related to fentanyl issues with China. Some estimates suggested iPhone prices could triple if costs were passed onto consumers.

The US is a key market for iPhones, with Apple accounting for over half of smartphone sales last year. Counterpoint Research reported that about 80% of Apple's iPhones sold in the US are made in China.

Apple has been diversifying its supply chains to reduce reliance on China. India and Vietnam are emerging as potential manufacturing hubs for Apple and Samsung.

As tariffs took effect, Apple reportedly accelerated production of devices made in India recently.

Trump had planned steep tariffs worldwide but announced a 90-day pause for most countries this week. However, he raised China's tariffs to 145% due to their readiness to retaliate with an 84% levy on US goods.

In a policy shift, Trump decided that countries not retaliating against US tariffs would receive reprieve until July with only a blanket tariff of 10%.

The White House indicated this move was part of negotiations for better trade terms globally. Trump believes his import taxes will correct unfairness in global trade and bring jobs back to the US.