In a recent development that offers relief to the technology sector, smartphones, computer monitors, and various electronic components have been exempted from the latest wave of tariffs imposed by former President Donald Trump. According to a notice from U.S. Customs and Border Protection released late Friday, these electronics will not be subject to the steep tariff increases that were announced earlier in the week.
The exemption, which applies to items entering the United States or leaving bonded warehouses starting April 5, 2025, follows the implementation of a 145% baseline tariff on a wide range of Chinese goods. However, the waiver does not extend to the separate 20% tariff targeting Chinese imports as a response to the country’s involvement in the fentanyl crisis.
For companies like Apple, whose production is deeply rooted in China, the decision comes as a significant relief. Nearly 90% of Apple’s iPhones are assembled in China, making the company especially vulnerable to rising trade barriers. Industry analysts believe this exemption could have substantial financial implications across the tech sector.
Wedbush Securities, a prominent investment firm, described the decision as highly favorable for tech investors. “This is the best outcome we could’ve hoped for this weekend,” said a statement from the firm. “Major players like Apple, Microsoft, and Nvidia can now look ahead with some breathing room as negotiations around the broader U.S.-China trade tensions continue.”
Although neither Microsoft nor Nvidia responded publicly, market analysts expect this move to prevent price hikes and disruptions in the supply chain, at least temporarily. Apple has not issued a formal statement on the matter.
Inventory levels will be key in the short term. Counterpoint Research estimates Apple has about six weeks of product stock in the U.S. Without the exemption, costs for smartphones and related electronics could have surged significantly once that inventory depleted.
While the exemption has eased immediate concerns, the White House maintains that bringing high-tech manufacturing back to the U.S. remains a central goal. In a Saturday statement, Press Secretary Karoline Leavitt emphasized the President’s commitment to reducing reliance on Chinese manufacturing.
“President Trump believes America must control the production of vital technologies — from chips and semiconductors to smartphones and laptops,” Leavitt said. “Thanks to the President’s leadership, tech giants like Apple, Nvidia, and TSMC are now making substantial investments to move operations to the U.S.”
Speaking aboard Air Force One on Friday, Trump hinted at the possibility of select exemptions to the broad tariffs, suggesting that around 10% of imports might fall outside the new rules “for obvious reasons.”
Experts caution, however, that while tariffs aim to protect domestic industries, the cost is often borne by American consumers. Rising prices on goods like electronics and automobiles have already led to a decline in consumer confidence, prompting many to make early purchases ahead of potential cost increases.
Gaming company Nintendo recently delayed U.S. preorders for its upcoming Switch 2 console, citing uncertainties over the tariff situation. The console, originally expected to retail for $450, may see a price spike to around $600 if tariffs are eventually applied, according to industry estimates.
Despite the push for reshoring manufacturing, many electronic parts — especially semiconductors — are still primarily produced in Asia due to cost advantages and infrastructure. The tariff exemption on these components is expected to benefit global manufacturers like Taiwan Semiconductor Manufacturing Company (TSMC), Samsung, and SK Hynix.
The administration has also announced that it will initiate a national security review focused on semiconductor imports, commonly referred to as a Section 232 investigation. This could lead to further policy decisions regarding the sourcing and production of critical tech components.
At a political fundraising event earlier in the week, Trump criticized the Biden administration for awarding a multibillion-dollar grant to TSMC as part of the CHIPS and Science Act, claiming his own administration had achieved similar outcomes through tougher tax threats without direct funding.
As tariff negotiations unfold, the tech industry watches closely, knowing the next phase could determine the future structure of the global electronics supply chain.
