Donald Trump exempts smartphones, computers and chips from ‘reciprocal’ tariffs

The Donald Trump administration has announced that a range of electronic products, including smartphones, laptops, and semiconductor chips, most of which are imported from China, will be exempt from reciprocal tariffs. The products will not be subject to the current 145 per cent tariffs levied on China or the 10 per cent baseline tariffs elsewhere, according to a notice from US Customs and Border Protection.

According to the notice issued on Friday, the exemptions apply to products entering the US or removed from warehouses as early as April 5.

The announcement, which would benefit companies like Apple, Samsung and chipmakers like Nvidia, came reportedly after concerns from the tech giants that the price of gadgets could skyrocket. However, the notice did not provide an explanation for the Trump administration's



move.

A US agency estimate suggests that around 80 per cent of Apple’s iPhone production and assembly takes place in China and the remaining 20 per cent are made in India.

In addition to smartphones and computers, other exempted products include disk drives, data processing equipment, semiconductor devices and equipment, memory chips, flat-panel displays, telecommunications equipment, chipmaking machinery, recording devices, and printed circuit board assemblies, among others -- many of which are rarely manufactured in the US.

Experts point out that setting up domestic production facilities for these products would take the US several years.

However, reports indicated that the exclusion might be temporary, suggesting that the products could soon be subject to a different tariff, likely a lower one for China.