UnusualWhales

The administration of U.S. President Donald Trump has granted exemptions for smartphones, computers, and certain other electronic devices from the “reciprocal” tariffs, including the 125% duties applied to imports from China.

According to a notice from U.S. Customs and Border Protection, these goods will be excluded from Trump’s 10% global tariff on most countries, as well as the larger tariffs specifically targeting Chinese imports.

This marks the first notable easing of tariffs on Chinese goods, with one trade analyst calling the move a “game-changer.”

While en route to Miami late Saturday, Trump told reporters aboard Air Force One that more details about the exemptions would be provided early next week.

“We’ll be very specific,” he said. “But we’re taking in a lot of money. As a country we’re taking in a lot of money.”

The decision follows concerns raised by U.S. technology companies over potential price hikes for consumer electronics, many of which are manufactured in China.

The exemptions—retroactive to April 5—also cover additional electronics and components, including semiconductors, solar cells, and memory cards.

“This is the dream scenario for tech investors,” Dan Ives, global head of technology research at Wedbush Securities, posted on X. “Smartphones, chips being excluded is a game-changer scenario when it comes to China tariffs.”

Ives added that major technology companies such as Apple, Nvidia, and Microsoft, as well as the broader tech sector, will welcome the move.

The White House indicated that the exemptions were intended to give companies more time to shift manufacturing to the United States.

“President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops,” said White House Press Secretary Karoline Leavitt.
“At the direction of the president, these companies are hustling to onshore their manufacturing in the United States as soon as possible.”

Speaking to reporters Friday, Trump expressed confidence in the high tariffs on China, suggesting they could lead to a positive outcome and highlighting his relationship with Chinese President Xi Jinping.

However, White House Deputy Chief of Staff for Policy Stephen Miller noted that these electronic goods remain subject to a separate 20% tariff on China related to fentanyl.

Some estimates indicated that U.S. iPhone prices could have tripled if the full cost of the tariffs had been passed on to consumers. The U.S. is a key market for iPhones, with Apple accounting for over half of smartphone sales in the country last year, according to Counterpoint Research.

The firm also estimates that around 80% of iPhones sold in the U.S. are made in China, with the remaining 20% produced in India.

Apple, like other smartphone manufacturers such as Samsung, has been working to diversify its supply chain in recent years to reduce dependence on Chinese production. India and Vietnam have emerged as leading alternatives for additional manufacturing capacity.

As the tariffs came into effect, Apple reportedly accelerated production of its India-made devices to offset the impact.

Earlier, Trump had planned for a broad set of new tariffs to take effect globally this week. On Wednesday, however, he announced a 90-day pause for most U.S. trading partners—excluding China, for which tariffs were raised to 145%.

Trump explained that the higher rate for China was due to Beijing’s 84% retaliatory tariff on U.S. goods.

In a shift in approach, Trump stated that countries not engaging in retaliation against U.S. tariffs would be subject only to a flat 10% rate until July.

The White House later described the move as a negotiation tactic aimed at securing more favorable trade terms. Trump has said his broader tariff strategy is designed to address perceived imbalances in the global trade system and bring manufacturing jobs back to the U.S.