The US government has given tariff exclusions to smartphones, computers and other electronics mostly imported from China. This spares these items from President Donald Trump’s 125% reciprocal duties.
US Customs and Border Protection (CBP) published a list of tariff codes excluded from the duties in a notice to shippers. The exclusions apply from 12:01 AM Eastern Time on April 5 (12:01 PM Singapore time) and work backwards.
CBP listed 20 product categories. These include the broad 8471 code covering all computers, laptops, disk drives and automatic data processing. Semiconductor devices, equipment, memory chips, flat panel displays, solar cells and memory cards also got exemptions.
While heading to Miami, Trump said he would share more details about the exemptions at the beginning of next week. “We’ll be very specific,” he told reporters on Air Force One. “But we’re taking in a lot of money. As a country, we’re taking in a lot of money.”
The late-night exclusion benefits major US technology companies like Apple, Dell Technologies and many other importers. The exemption only applies to Trump’s reciprocal tariffs on Chinese goods, which rose to 125% this week, according to a White House official.
Trump’s earlier 20% duties on all Chinese imports, which he linked to the US fentanyl crisis, remain in place even for the exempted electronics.
Smartphones were the top US import from China in 2024, totaling $41.7 billion (S$54.6 billion). Chinese-built laptop computers ranked second at $33.1 billion (S$43.3 billion), based on US Census Bureau data.
Analysts had predicted that without exemptions, a top-end Apple iPhone could cost up to $2,300 (S$3,000) from its current $1,599 (S$2,090).
At 125%, economists have said US-China trade might largely stop. The US serves as a key market for iPhones, with Apple making up more than half of smartphone sales last year, according to Counterpoint Research.
About 80% of Apple’s iPhones for US sale come from China. The other 20% are made in India.
White House spokeswoman Karoline Leavitt stated that Trump has made it clear the US cannot depend on China to make critical technologies like semiconductors, chips, smartphones and laptops.
“At the direction of the president, these companies are hustling to onshore their manufacturing in the United States as soon as possible,” Leavitt said.
A White House official added that the President will start a new national security trade investigation into semiconductors soon. This could lead to other new tariffs on the sector.
Trump campaigned to return to the White House in 2024 largely by promising to lower prices that had increased due to inflation from the Covid-19 pandemic and Russia’s war in Ukraine.
He also promised as a candidate to impose the tariffs that have become a central part of his economic agenda.
The President has brushed off financial market turbulence and expected price increases from the levies. His “reciprocal tariffs” have raised fears of a US recession and drawn criticism from fellow Republicans. They worry about losing control of the US House of Representatives and Senate in 2026’s congressional elections.
Trump paused higher duty rates for 57 trading partners and the EU last week. This left most countries with a 10% tariff as they try to negotiate trade deals with Washington. The 90-day pause lasts until July.
China matched Trump’s latest tariff increase on US imports to 125%. This raises the stakes in a trade war that could disrupt global supply chains.
Trump, who spent the weekend at his Florida home, told reporters on April 11 that he felt comfortable with the high tariffs on China but had a good relationship with President Xi Jinping. “And I think something positive is going to come out of that,” he said.
US stocks finished a volatile week higher, but gold reached a record high during trading. Benchmark US 10-year government bond yields had their biggest weekly increase since 2001 alongside a drop in the dollar, showing a lack of confidence in the US.
