Trump exempted phones and computers from taxes, including those coming from China.
In addition to smartphones and computers, other electronic devices and components, including semiconductors, solar panels, and memory cards, will be exempt from President Trump's tariffs.
The administration of U.S. President Donald Trump announced that smartphones and computers would be exempt from new tariffs. In a statement shared by U.S. Customs and Border Protection, it was noted that the exemption also applies to the 145% tariff on products imported from China and covers other electronic devices and components, including semiconductors, solar panels, and memory cards. The tariffs would have a significant impact on American tech giants like Apple, which conducts 90% of iPhone production and assembly in China. The Trump administration believed that the tax bombardment targeting China would force Apple to produce the iPhone in the U.S. for the first time. However, since the launch of the first model 18 years ago, Apple has produced most of its iPhones in China. Among the deterrents to Apple shifting production domestically is the complex supply chain it began building in China in the 1990s. Establishing new factories in the U.S. is expected to take several years and cost billions of dollars. This situation would force Apple to increase the price of the iPhone threefold, facing economic forces that could undermine product sales. The new exemption will apply to products entering or leaving warehouses in the U.S. starting April 5. This marks the latest tax change by the Trump administration, which has made several U-turns in its ambitious plans to impose tariffs on products from most countries. The aim of these tariffs was to encourage more domestic production. However, the exemptions seem to acknowledge that nearly the entire current electronic supply chain is in Asia and that shifting this to the U.S. would be difficult.