Donald Trump’s tariff strategy has been increasingly weakened. In a recent reversal from the Trump administration, U.S. Customs and Border Protection issued late Friday night guidance indicating new exemptions for smartphones, computers, and other electronics. This significant exemption benefits tech companies that were feeling the burden of tariffs.
According to Bloomberg, these exemptions cover popular devices such as iPhones, MacBooks, as well as Android and Windows devices manufactured overseas. Additionally, they include hardware components like hard drives, computer processors, memory chips, and graphics cards. However, the exemption does not extend to video game consoles, adding uncertainty to the launch of the Nintendo Switch 2.
Notably, the exemptions apply universally, ensuring these goods imported into the United States will not be subject to the existing 10% global tariff applicable to all nations nor the 145% tariff that is currently imposed on China. The exemption has been backdated to April 5, 2025.
This move comes amid another week of volatile markets, with pressure mounting on Trump to ease tensions with the nation’s leading trade partner. Meanwhile, global investors are reportedly shifting their capital away from the U.S. The markets have seen improvements with any minor indication that Trump might reconsider his stringent tariff policies.
Last Friday, Trump hinted at such exemptions while speaking to reporters aboard Air Force One, suggesting there could be “a couple of exceptions for obvious reasons,” though he did not elaborate on these reasons. Analysts suggest the exemptions may aim to support companies enduring significant financial strains.
The tech industry was already signaling impending difficulties. Apple reportedly airlifted 1.5 million iPhones to the U.S. from India to circumvent the tariffs. The company also warned of potential price increases for its devices. Other major tech companies, such as Asus, Sony, and Nvidia, began raising retail prices as tariffs were implemented. This prompted consumers to stockpile devices, fearing price hikes.
With the new exemptions, those intending to purchase a phone or computer, as well as companies contemplating logistics overhauls to mitigate added costs, can breathe a slight sigh of relief.
These exemptions suggest a step back from Trump’s stance that electronics could be domestically manufactured. Earlier in the week, Press Secretary Karoline Leavitt conveyed Trump’s belief that the necessary labor and resources exist in the U.S. to produce iPhones domestically, although experts contend this could result in a device costing up to $3,500 and require years to establish the manufacturing infrastructure.