The U.S. President Donald Trump administration has exempted smartphones, computers, chips, and other electronic devices from the 10 per cent global tariff.
A notice from the U.S. Customs and Border Patrol said that electronic goods would be excluded in most counties and the much larger 125 per cent Chinese import tax. The move marks a huge relief amid Trump’s tariffs wind as experts described it as a “game-changer scenario”.
The U.S. President said he would give more details of the exemptions this week.
“We’ll be very specific. But we’re taking in a lot of money. As a country we’re taking in a lot of money,” he said.
Moreover, the development breathes an air of calmness into U.S. tech companies after they expressed concerns that the price of gadgets could increase as many of them were being imported from China. The tariff exemption, backdated to April 5, also includes electronic devices such as components, including semiconductors, solar cells, and memory cards.
Reacting to the development, Dan Ives, global head of technology research at Wedbush Securities, explained that big tech firms like Apple, Nvidia, Microsoft, and the broader tech industry can now be rest assured.
“This is the dream scenario for tech investors. Smartphones, chips being excluded is a game-changer scenario when it comes to China tariffs,” he said.
Also Read: MTN CEO, Ralph Mupita warns Trump’s tariffs may impact telecom services in Africa.
A recent Q1 2025 report by the International Data Corporation (IDC) claimed that the Personal Computers (PC) industry is predicted to experience several tailwinds and headwinds for the rest of the year, owing to the U.S. tariff, which makes for a challenging outlook and difficult demand planning. It added that the market was fairly affected by the tariff wars during the first quarter.
Compared to Q4 2024 of 68.9 million, PC shipments witnessed an 8.27 per cent decline to 63.2 million shipments in Q1 2025.
However, the electronic goods are still subject to the 20 per cent tariff on China related to fentanyl, White House Deputy Chief of Staff on Policy Stephen Miller posted on X. In medical settings, some electronic devices are used to deliver precise doses of fentanyl medications to enhance safety and control.
Tariff waiver and upliftment of domestic production
The U.S. Presidency highlighted that the tariff waiver was to ensure companies had more time to move production to the U.S. This signifies a plan to alleviate its reliance on China for electronic goods production.
“President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops. At the direction of the president, these companies are hustling to onshore their manufacturing in the United States as soon as possible,” White House Press Secretary Karoline Leavitt said in a statement.
Trump said on Friday that he was comfortable with the high tariffs on China and expected a positive result, a move that could jeopardize his relationship with Chinese President Xi Jinping. In its tit-for-tat tariffs, China imposed levies of 34 per cent on US goods, before increasing it to 84 per cent and then 125 per cent.
Trump announced a 90-day pause for countries hit by higher US tariffs – except China, whose tariffs he raised to 145 per cent with claims of the country’s readiness to retaliate with its levy on U.S goods. Trump said all countries that had not retaliated against U.S. tariffs would receive the relief and only face a blanket tariff of 10 per cent by July.
According to the White House, the move was a negotiating tactic to extract more favourable trade terms from other countries. Also, the import taxes are structured to address unfairness in the global trading system, as well as bring jobs and factories back to the U.S.
Amid the China-U.S. tariff war, there have been claims that iPhone prices in the U.S. could triple if costs were passed on to consumers. While the U.S. is a major market for iPhones, Apple accounted for more than half of its smartphone sales last year, according to Counterpoint Research.
In a bid to avoid over-reliance, Apple, as well as Samsung, has been trying to move its supply chain away from China. 80 per cent of Apple’s iPhones intended for U.S. sale are made in China, with the remaining 20 per cent made in India. Also, India and Vietnam emerged as frontrunners for additional manufacturing hubs.
As the tariffs took effect, Apple reportedly looked to speed up and increase its production of India-produced devices in recent days.
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