Electronics Exempt from Trump Tariffs, Offering Relief for Tech Industry

A recent decision by U.S. Customs and Border Protection has granted an exemption on certain electronics from President Donald Trump’s latest round of tariffs. The ruling, posted late Friday, excludes smartphones, computer monitors, and various electronic components from the new import duties.

The exemption applies retroactively to goods brought into the country or released from bonded warehouses starting April 5. This move follows the administration’s announcement earlier in the week imposing a sweeping 145% minimum tariff on Chinese imports—excluding, however, an existing 20% tariff tied to China’s alleged role in the fentanyl trade.

Major Relief for Big Tech and Investors

The electronics exemption is expected to significantly impact U.S.-based tech giants like Apple, which relies heavily on Chinese manufacturing. According to Wedbush Securities, around 90% of iPhone production and assembly occurs in China. Analysts from the firm described the news as “the best possible scenario for tech investors,” adding that companies like Apple, Nvidia, and Microsoft can now “breathe a huge sigh of relief.”

While Apple declined to comment, sources note the company has approximately six weeks of inventory in the U.S., and without the exemption, product prices were expected to climb sharply once stock ran out.

The White House emphasized the strategic push to bring manufacturing back to the United States. Press Secretary Karoline Leavitt reiterated President Trump’s position that America must reduce its dependence on China for key technologies like semiconductors, chips, smartphones, and laptops. She added that companies including Apple, Nvidia, and Taiwan Semiconductor Manufacturing Company (TSMC) are now accelerating their efforts to build domestic manufacturing plants.

Trump, speaking aboard Air Force One on Friday, hinted that some exclusions were inevitable: “There could be a couple of exceptions for obvious reasons, but I would say 10% is a floor.”

Tariffs, economists warn, typically shift the financial burden to consumers, prompting a rush among Americans to purchase high-cost goods ahead of potential price hikes. This sentiment is echoed in Nintendo’s recent move to delay preorders of its upcoming Switch 2 console, initially priced at $450. Experts now estimate it could hit the market closer to $600 due to tariff implications.

Despite the administration’s hopes to revitalize U.S. manufacturing, some electronics—particularly semiconductors and microchips—remain difficult to produce domestically. The exemption will benefit not only U.S. firms but also Asian chipmakers like TSMC, Samsung, and SK Hynix.

A White House official stated that industries like autos, steel, pharmaceuticals, and chips will continue to face selective tariffs to ensure fairness. Additionally, Trump is expected to launch a national security study, known as a Section 232 review, into the impact of semiconductor imports.

During a recent Republican fundraising event, Trump also criticized the Biden administration’s $6.6 billion grant to TSMC under the 2022 CHIPS and Science Act. “I didn’t give them a dime,” he said, “but I told them if you don’t build here, you’re going to pay a massive tax—maybe 25%, maybe even 100%.”