Trump administration says it will exclude some electronics from reciprocal tariffs
Trump

Trump administration says it will exclude some electronics from reciprocal tariffs


Share this post

The Trump administration said it would exclude electronics like smartphones and laptops from reciprocal tariffs, a move that could help keep the prices down for popular consumer electronics that aren’t usually made in the U.S.

It would also benefit big tech companies like Apple and Samsung and chip makers like Nvidia, setting the stage for a likely tech stock rally.

U.S. Customs and Border Protection said items like smartphones, laptops, hard drives, flat-panel monitors and some chips would qualify for the exemption. Machines used to make semiconductors are excluded too. That means they won’t be subject to the current 145% tariffs levied on China or the 10% baseline tariffs elsewhere.

It’s the latest tariff change by the Trump administration, which has made several U-turns in their massive plan to put tariffs in place on goods from most countries.

The exemption seemed to reflect the president’s realization that his China tariffs are unlikely to shift more manufacturing of smartphones, computers and other gadgets to the U.S. any time soon, if ever, despite the administration’s predictions that the trade war prod Apple to make iPhones in the U.S. for the first time.

But that was an unlikely scenario after Apple spent decades building up a finely calibrated supply chain in China. What’s more, It would take several years and cost billions of dollars to build new plants in the U.S., and then confront Apple with economic forces that could triple the price of an iPhone, threatening to torpedo sales of its marquee product.

Trump’s decision to exempt the iPhone and other popular electronics made in China mirrors the similar relief that he gave those products during the trade war of his first term in the White House. But Trump began his second term seemingly determined to impose the tariffs more broad this time, triggering a meltdown in the market values of Apple and other technology powerhouses.

The turmoil battered the stocks of tech’s “Magnificent Seven” — Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet and Facebook parent Meta Platforms. At one point earlier this week, the combined Magnificent Seven’s combined market value had plunged by $2.1 trillion, or 14%, from April 2 when Trump unveiled sweeping tariffs on a wide range of countries.

Some of the losses eased this past Wednesday when Trump paused the tariffs outside of China, paring the lost value in the Magnificent Seven to $644 billion, or a 4% decline, from April 2. Now, the stage is set for another tech rally Monday when trading resumes in the U.S. stock market, with Apple likely leading the way because the iPhones made in China remain the company’s biggest money maker.

The electronics exemption also should relieve consumer worries that the China tariffs would result in hefty price hikes on smartphones and other devices that have become essential tools of modern living,

It’s the kind of friendly treatment that industry was envisioning when Apple CEO Tim Cook, Tesla CEO Elon Musk, Google CEO Sundar Pichai, Facebook founder Mark Zuckerberg and Amazon founder Jeff Bezos assembled behind the president during his Jan. 20 inauguration. That united display of fealty reflected Big Tech’s hopes that Trump would be more accommodating than President Joe Biden’s administration’s and help propel an already booming industry to even greater heights.

Apple won praise from Trump in late February when the Cupertino, California, company committed to invest $500 billion and add 20,000 jobs in the U.S. during the next four years. The pledge was an echo of a $350 billion investment commitment in the U.S. that Apple made during Trump’s first term when the iPhone was exempted from China tariffs.

The move takes off “a huge black cloud overhang for now over the tech sector and the pressure facing U.S. Big Tech,” said Wedbush analyst Dan Ives in a research note.

White House Press Secretary Karoline Leavitt did not address the exemptions specifically but indicated the administration still plans to push for tech companies to move manufacturing to the U.S.

“President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops,” Leavitt said in an emailed statement.

She said the administration has secured U.S. investments from tech companies including Apple, TSMC and Nvidia and these companies are “hustling to onshore their manufacturing in the United States as soon as possible.”


Share this post
Comments

Be the first to know

Join our community and get notified about upcoming stories

Subscribing...
You've been subscribed!
Something went wrong
Rihanna Marks 20 Years of Her Debut Album ‘Music of the Sun’

Rihanna Marks 20 Years of Her Debut Album ‘Music of the Sun’

Two decades ago, a teenage Rihanna left her home in Barbados with a dream. At just 17 years old, she released her debut album Music of the Sun on August 29, 2005. Now, twenty years later, Rihanna is celebrating the milestone with gratitude, nostalgia, and fresh surprises for fans. To mark the anniversary, Rihanna shared a moving message on Instagram, reflecting on the moment that changed her life forever. “20 years ago, I left my country, my culture, my food, and family to embark on a journey t


O A

Trump Revokes Secret Service Protection for Harris Ahead of Book Tour

Trump Revokes Secret Service Protection for Harris Ahead of Book Tour

President Donald Trump has cancelled Secret Service protection for Kamala Harris, which had been extended by Joe Biden before he left office, according to one of her advisers. As a former vice-president, Ms Harris was entitled under law to receive six months of security after leaving office in January, which was due to expire in July. Her protection had been quietly extended for another year by a directive signed by her former boss but was revoked by Trump in a memo dated on Thursday, accordin


O A

Apple Music Now Lets You Transfer Playlists From Spotify

Apple Music Now Lets You Transfer Playlists From Spotify

Apple Music's latest feature makes it easier to switch services and juggle multiple music platforms. Apple Music app customers woke up to a new feature Tuesday, although not many know it exists yet.  View this post on Instagram A post shared by New Dope (@newdopehq) Apple Music subscribers can now grab songs or playlists from other music platforms, notably Spotify, and bring them to Apple. The ability to transfer music from other music services is buried in the Music App settings. Init


O A

French Montana & Sheikha Mahra Confirm Engagement

French Montana & Sheikha Mahra Confirm Engagement

French Montana is starting his next chapter in life with a major gesture of love. The rapper proposed to Princess Sheikha Mahra bint Mohammed bin Rashid Al Maktoum with a diamond ring that carries a price tag of more than one million dollars. The piece was created by Eric the Jeweler of Mavani & Co., who worked closely with French for several months before the final design was completed. The ring features an emerald-cut diamond that weighs 11.53 carats and is valued at approximately $1,050,000


O A