In a notice quietly posted by U.S. Customs and Border Protection on Friday evening, the administration revealed that smartphones, computer monitors, semiconductors, and various electronic components â€" including memory chips and flat-panel displays â€" will be excluded from the 145% reciprocal tariff introduced earlier this week.
The exemption, which is retroactive to goods shipped or released from bonded warehouses on or after April 5, does not extend to the separate 20% levy targeting China's alleged role in fentanyl trafficking.
The move marks a significant shift in the White House's trade posture, following an outcry from technology firms over the potentially devastating impact of the tariffs on supply chains and consumer prices.
'This is a game-changing development for the tech sector,' said Dan Ives, a technology analyst at Wedbush Securities. 'Big Tech can exhale. These exemptions remove the black cloud hanging over companies like Apple, Microsoft, and Nvidia.'
Analysts had warned that without the exemption, U.S. consumers could see the price of an iPhone surge to more than $3,000, with ripple effects across the broader economy. Apple, which relies on China for around 90% of its iPhone manufacturing, was particularly exposed. The tech giant has reportedly lost over $600 billion in market value since Trump's tariff announcement last week.
Despite the tariff relief, the White House maintains that the long-term goal remains the repatriation of tech manufacturing.
'President Trump has made it clear: the United States cannot remain dependent on China for critical technologies,' White House Press Secretary Karoline Leavitt said Saturday.
'These exemptions are temporary â€" they provide breathing room while companies accelerate plans to onshore production.'
Trump echoed that sentiment during a brief exchange with reporters aboard Air Force One.
'We're taking in a lot of money,' he said. 'But we're also being strategic. There will be exceptions â€" smart ones â€" to protect American jobs in the long run.'
The tariff exemptions, covering 20 product categories, are part of a wider recalibration of Trump's trade strategy.
Earlier in the week, the president imposed a universal 10% tariff on imports from most countries â€" excluding China â€" while granting a 90-day grace period to nations that had not retaliated against U.S. trade measures. China, however, remains subject to heightened penalties after its own retaliatory tariff hike of 84% on U.S. goods.
Notably, the exemptions apply to components that are difficult or costly to source domestically, such as microchips and flash storage. These are vital to the operations of not only American tech firms but also Asian manufacturing giants like Taiwan Semiconductor Manufacturing Company (TSMC) and South Korea's Samsung and SK Hynix, which may benefit from continued U.S. demand.
Even as the exemptions ease immediate concerns, questions linger over the long-term trajectory of U.S.-China trade after China on Friday announced a 125% retaliatory tariff on products imported from the U.S.
Wycliffe Nyamasege
