The Trump administration is exempting phones, computers, and other electronics from its tariffs on China and other nations.
U.S. Customs and Border Patrol shared a notice late Friday listing 20 products that are excluded from Trump’s 145 percent tariffs on China and 10 percent minimum tariffs on foreign imports. Phones, computers, chips, routers, and semiconductor chips are some of the products on the list.
The exemption will benefit consumers who were potentially facing higher prices on iPhones and many other everyday electronics because of Trump’s tariffs on China. It will also benefit companies including Apple and semiconductor chip maker Nvidia, two of America’s largest corporations by market capitalization.
Apple’s iPhones are assembled almost entirely in China and tariffs could have a dramatic impact on the price of the iconic smartphones. One analyst predicted the price of iPhones would increase to around $3,500 if Apple reshored its complex supply chains from China because of the tariffs. In February, Apple announced a $500 billion investment in the U.S. over the next four years to expand its U.S. manufacturing footprint.
President Donald Trump raised tariffs on China to 145 percent after a series of tit-for-tat retaliations beginning last week when Trump imposed a sweeping tariff package on nations worldwide. The tariffs sent Wall Street into free fall and caused panic throughout the global economy because they were expected to significantly raise prices and hinder economic growth.
Amid the market turmoil, Trump paused most of the tariffs for 90 days, except for those placed on China, and he placed a 10 percent tariff on imports for the time being. Trump admitted the market collapse motivated his decision to temporarily halt the tariffs, a move that caused markets to soar immediately afterwards.
“I thought that people were jumping a little bit out of line. They were getting yippee, you know, they were getting a little bit yippee. A little bit afraid,” Trump said.
Existing tariffs on Canada and Mexico on goods not covered by the U.S.-Mexico-Canada agreement will also remain in effect. Trump initially announced tariffs on China would be 125 percent, but the White House clarified the total would be 145 percent when including 20 percent tariffs Trump put on China earlier in his term.
China has quickly retaliated to each one of Trump’s tariff announcements, increasing its tariffs on U.S. goods to 125 percent Friday to counter Trump’s latest move.
“Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy,” Beijing’s finance ministry said Friday.
Beijing has repeatedly vowed to fight a trade war against the U.S. as long as the Trump administration wants one. President Trump told reporters Friday he is open to a deal with China, echoing the White House’s comments earlier in the day. Trump and his team believe U.S. tariffs on China and elsewhere are necessary for revitalizing American manufacturing and putting an end to decades of unfair trade practices.
The Trump administration has said 75 nations have reached out to negotiate, with 15 of them proposing deals already. Trump has held discussions with leaders from Japan, South Korea, and Vietnam to discuss trade and maintain U.S. alliance in the Indo-Pacific. Italian prime minister Giorgia Meloni is set to visit Washington, D.C. next week to discuss trade with Trump and potentially bridge the gap between Trump and the European Union.