Several tech products exempt from new tariffs

Joey Garrison

USA TODAY

WASHINGTON – Smartphones, computers and other electronic imports have been exempted from President Donald Trump’s reciprocal tariffs, softening the impact the duties could have on the cost of many popular tech products in the United States.

The exemptions, published late April 11 in updated guidance from the U.S. Customs and Border Protection, include electronic imports made in China, which Trump has targeted with 125% reciprocal tariffs. Hard drives, memory chips and semiconductors are also among the excluded products. The tariff exemptions were first reported by Bloomberg.

The move marks a significant pivot in Trump’s aggressive tariff policy amid an escalating trade war with China. The Trump administration has said China is not among the 75 countries that have approached the United States seeking trade deals following Trump’s round of reciprocal tariffs announced April 2.

Trump has argued the heavy tariffs are needed to spur domestic manufacturing in the United States, including in the growing tech sector.

But his massive tariffs on China posed a significant threat to Apple, which manufactures most of its products in China, including the popular iPhone. Microsoft and Samsung Electronics are other large tech companies that manufacture products overseas.

Tim Cook, CEO of Apple, is among several tech leaders who have tried to curry favor with the Trump administration as Trump pursues tariffs that have major ramifications on their businesses. Cook met with Trump at the White House in February and donated $1million to Trump’s inaugural committee.

Despite the tech tariff exemptions, White House press secretary Karoline Leavitt in a statement Saturday said, 'President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops.'

Leavitt said Trump has secured 'trillions of dollars in U.S. investments' from the largest tech companies in the world, including Apple, TSMC and Nvidia.

While excluded from the 125% reciprocal tariffs on China, the tech products appear to still be subject to 20% tariffs Trump previously imposed on Beijing in retaliation to the manufacturing of fentanyl in China.

Although semiconductors are exempt from the tariffs, Trump has previously discussed plans to target semiconductors with industry-specific tariffs on imports from all countries. He has yet to impose these tariffs, however. The White House on Saturday said potential tariffs on semiconductors are under review.

Trump has previously imposed industry-specific universal tariffs on steel, aluminum and auto imports – each of which remains in place – and has pledged forthcoming tariffs on pharmaceuticals.

Amid turmoil in the stock market, Trump on April 9 delayed for 90 days reciprocal tariffs that he imposed on many countries, but he kept intact a lower, universal, baseline 10% tariff on all imports.

Trump also raised tariffs on China, bringing the total tariff rate on Chinese imports to 145% and prompting Beijing to hit back with retaliatory tariffs on U.S. exports.