President Donald Trump was seen in the Oval Office of the White House on April 7th. New guidance from U.S. Customs and Border Protection indicates that smartphones, computers, and various other tech devices and components will be exempt from the recent tariffs imposed by President Trump. The guidance, released late on a Friday evening, follows the imposition of 145% tariffs on products from China earlier this month. This move had raised concerns for tech giants like Apple, who manufacture iPhones and most of their products in China.
The exemptions also apply to other electronic devices and components such as semiconductors, solar cells, flat panel TV displays, flash drives, and memory cards. While these products may face additional duties in the future, the rates are likely to be significantly lower than the initial 145% imposed on Chinese goods.
This news has been welcomed by tech companies like Apple, which heavily rely on manufacturing in China. Evercore ISI reports that China produces 80% of iPads and over half of Mac computers. Dan Ives, from Wedbush Securities, describes the exemptions as a game-changer for tech investors and highlights the detrimental impact the tariffs could have had on big tech companies.
Following Trump’s tariff announcement, Apple’s market value plummeted by over $640 billion, and there were concerns that the cost of an iPhone could have soared to $3,500. The uncertainty surrounding the tariffs led to a sharp sell-off in stocks and increased volatility on Wall Street. The bond market also experienced significant movements, including a 50 basis point increase in the benchmark 10-year Treasury yield.
The exclusion of items from Trump’s tariffs under the new guidelines applies to products shipped as of April 5, 2025. This stipulation aims to provide clarity and aid financial planning for U.S. shippers, who are responsible for paying the tariffs upon arrival at U.S. Customs for processing and release.
