Donald Trump Eases Tariff Pain: Electronics, Smartphones and Chips Exempted

U.S. President Donald Trump’s administration has exempted key electronics products, including smartphones, computers, and semiconductor chips, from the administration’s controversial reciprocal tariffs. The decision, which could significantly benefit major tech players like Apple and Samsung Electronics, is seen as a move to cushion consumers from soaring prices amid escalating trade tensions.

The new exemptions, detailed late Friday by U.S. Customs and Border Protection, mark a shift in Trump’s aggressive tariff strategy. These electronics will no longer face the punitive 125% tariff on Chinese imports or the baseline 10% global tariff imposed on a wide range of products from nearly all other countries. This exclusion specifically covers high-demand items such as smartphones, laptops, hard drives, and critical computer chips, many of which are not produced in the U.S. due to the complexities and costs of setting up domestic manufacturing.

The move has sent ripples through the tech industry, with companies like Apple and Samsung likely to benefit from the tariff reprieve, as it could help stabilize prices for consumers in the near term. Meanwhile, the global chip manufacturing sector is also on edge, with machines used for semiconductor production, including those from Taiwan Semiconductor Manufacturing Co., now exempted from the tariffs. TSMC has already committed to a major new U.S. investment, positioning itself as a key player in the country's future tech arena.

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However, the respite may be short-lived. Industry experts warn that these exclusions stem from initial tariff frameworks aimed at preventing an overwhelming stack of levies on certain sectors. The latest tariff rollback hints at an impending recalibration, with electronics and semiconductors likely to face a revised, lower tariff in the near future—especially for products coming from China.
Trump has long suggested targeted tariffs on semiconductors, but so far has refrained from enforcing them. The new exemptions appear to foreshadow a potential focus on specific sectors, where a reduced levy may be levied. However, there has been no official confirmation of such a change, and the White House did not immediately respond to requests for comment.