Over the past few days, the details surrounding President Donald Trump’s tariffs have undergone significant changes. Recent updates indicate that various electronics, including the majority of smartphones, will not be subject to the newly proposed tariffs.
Guidelines published by Customs and Border Protection on Friday announced that 20 product categories, such as smartphones, computers, semiconductors, and flat-panel display modules, will be exempt from the 125% tariff on Chinese imports, as well as the revised 10% baseline tariff on imports from other countries. However, the new guidelines did not mention any changes to the existing 20% tariff on Chinese goods. In response, China has increased tariffs on U.S. imports by 125%.
White House Deputy Press Secretary Kush Desai informed CNBC that President Trump has emphasized the need for the United States to reduce its dependence on China for manufacturing essential technologies like semiconductors, chips, smartphones, and laptops. Desai stated, “At the direction of the President, these companies are hustling to onshore their manufacturing in the United States as soon as possible.”
Recently, CNBC reported widespread panic-buying of iPhones earlier in the month, spurred by concerns over the potential impact of the 125% tariffs. Consumers feared that rising costs would place the technology out of reach. Apple was preparing for significant disruptions as a result. The latest exemptions provide some relief to the company, at least temporarily.