The Trump administration's move is aimed at lessening the cost impact for US consumers of President Donald Trump's tariff policy.
The exemptions suggest an increasing awareness within the Trump administration of the pain his tariffs could cause for inflation-weary US consumers.
WASHINGTON/WEST PALM BEACH, Florida - The US government has granted tariff exclusions for smartphones, computers and other electronics imported largely from China, sparing them from President Donald Trump’s steep 125 per cent reciprocal duties.
In a notice to shippers, the US Customs and Border Protection (CBP) agency published a list of tariff codes that will be excluded from the duties. The exclusions are retroactive to 12.01am Eastern Time on April 5 (12.01pm Singapore time).
The US CBP listed 20 product categories, including the very broad 8471 code for all computers, laptops, disk drives and automatic data processing.
It also included semiconductor devices, equipment, memory chips and flat panel displays.
The notice did not provide an explanation for the Trump administration’s move, but the late-night exclusion provides welcome relief to major US technology firms, including Apple, Dell Technologies and countless other importers.
The exclusion applies only to Mr Trump’s reciprocal tariffs on Chinese goods, which climbed to 125 per cent this week, according to a White House official.
Mr Trump’s prior 20 per cent duties on all Chinese imports that he said were related to the US fentanyl crisis remain in place.
But the official said the President will launch a new national security trade investigation into semiconductors soon that could lead to other new tariffs on the sector.
Separately, White House spokeswoman Karoline Leavitt said in a statement that Mr Trump has made it clear that the US cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones and laptops.
But she said that at Mr Trump’s direction, major tech firms, including Apple and chipmakers Nvidia and Taiwan Semiconductor, “are hustling to onshore their manufacturing in the United States as soon as possible”.
Tariff pain
But the exemptions suggest an increasing awareness within the Trump administration of the pain that his tariffs had in store for inflation-weary consumers, especially on popular products such as smartphones, laptops and other electronics.
Even at a lower 54 per cent tariff rate on Chinese imports, analysts predicted that the price of a top-end Apple iPhone could jump to US$2,300 (S$3,000) from US$1,599. At 125 per cent, economists and analysts have said that US-China trade could largely halt.
Smartphones were the top US import from China in 2024, totalling US$41.7 billion, while Chinese-built laptop computers were second, at US$33.1 billion, according to US Census Bureau data.
Mr Trump ran in the election to win back the White House in 2024 largely on a promise to bring down prices that, fuelled by inflation from the Covid-19 pandemic and Russia’s war in Ukraine, had rocketed and tarnished the economic reputation of former president Joe Biden and his Democratic allies.
But Mr Trump also promised as a candidate to impose the tariffs that have become a central part of his economic agenda, and the President has dismissed the turbulence in financial markets and expected price increases arising from the levies as a disturbance that was a necessary part of realigning the global economy and world trading order with his vision.
His so-called “reciprocal tariffs”, however, have raised fears of a US recession and drawn criticism from his fellow Republicans, who do not want to lose control of the US House of Representatives and Senate in 2026’s congressional elections to Democrats, who have sharply attacked Mr Trump’s policies.
Mr Trump paused higher duty rates for 57 trading partners and the EU last week, leaving most countries with a 10 per cent tariff as they seek to negotiate trade deals with Washington.
Mr Trump, who is spending the weekend at his residence in Florida, told reporters on April 11 that he was comfortable with the high tariffs on China but had a good relationship with President Xi Jinping and believed something positive would come out of the trade conflict between them.
But financial markets were in turmoil again on April 11 as China matched Mr Trump’s latest tariff increase on US imports to 125 per cent, raising the stakes in a trade war that threatens to upend global supply chains.
US stocks ended a volatile week higher, but the safe haven of gold hit a record high during the session and benchmark US 10-year government bond yields posted their biggest weekly increase since 2001 alongside a slump in the dollar, signalling a lack of confidence in the US.
www.straitstimes.com
The exemptions suggest an increasing awareness within the Trump administration of the pain his tariffs could cause for inflation-weary US consumers.
WASHINGTON/WEST PALM BEACH, Florida - The US government has granted tariff exclusions for smartphones, computers and other electronics imported largely from China, sparing them from President Donald Trump’s steep 125 per cent reciprocal duties.
In a notice to shippers, the US Customs and Border Protection (CBP) agency published a list of tariff codes that will be excluded from the duties. The exclusions are retroactive to 12.01am Eastern Time on April 5 (12.01pm Singapore time).
The US CBP listed 20 product categories, including the very broad 8471 code for all computers, laptops, disk drives and automatic data processing.
It also included semiconductor devices, equipment, memory chips and flat panel displays.
The notice did not provide an explanation for the Trump administration’s move, but the late-night exclusion provides welcome relief to major US technology firms, including Apple, Dell Technologies and countless other importers.
The exclusion applies only to Mr Trump’s reciprocal tariffs on Chinese goods, which climbed to 125 per cent this week, according to a White House official.
Mr Trump’s prior 20 per cent duties on all Chinese imports that he said were related to the US fentanyl crisis remain in place.
But the official said the President will launch a new national security trade investigation into semiconductors soon that could lead to other new tariffs on the sector.
Separately, White House spokeswoman Karoline Leavitt said in a statement that Mr Trump has made it clear that the US cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones and laptops.
But she said that at Mr Trump’s direction, major tech firms, including Apple and chipmakers Nvidia and Taiwan Semiconductor, “are hustling to onshore their manufacturing in the United States as soon as possible”.
Tariff pain
But the exemptions suggest an increasing awareness within the Trump administration of the pain that his tariffs had in store for inflation-weary consumers, especially on popular products such as smartphones, laptops and other electronics.
Even at a lower 54 per cent tariff rate on Chinese imports, analysts predicted that the price of a top-end Apple iPhone could jump to US$2,300 (S$3,000) from US$1,599. At 125 per cent, economists and analysts have said that US-China trade could largely halt.
Smartphones were the top US import from China in 2024, totalling US$41.7 billion, while Chinese-built laptop computers were second, at US$33.1 billion, according to US Census Bureau data.
Mr Trump ran in the election to win back the White House in 2024 largely on a promise to bring down prices that, fuelled by inflation from the Covid-19 pandemic and Russia’s war in Ukraine, had rocketed and tarnished the economic reputation of former president Joe Biden and his Democratic allies.
But Mr Trump also promised as a candidate to impose the tariffs that have become a central part of his economic agenda, and the President has dismissed the turbulence in financial markets and expected price increases arising from the levies as a disturbance that was a necessary part of realigning the global economy and world trading order with his vision.
His so-called “reciprocal tariffs”, however, have raised fears of a US recession and drawn criticism from his fellow Republicans, who do not want to lose control of the US House of Representatives and Senate in 2026’s congressional elections to Democrats, who have sharply attacked Mr Trump’s policies.
Mr Trump paused higher duty rates for 57 trading partners and the EU last week, leaving most countries with a 10 per cent tariff as they seek to negotiate trade deals with Washington.
Mr Trump, who is spending the weekend at his residence in Florida, told reporters on April 11 that he was comfortable with the high tariffs on China but had a good relationship with President Xi Jinping and believed something positive would come out of the trade conflict between them.
But financial markets were in turmoil again on April 11 as China matched Mr Trump’s latest tariff increase on US imports to 125 per cent, raising the stakes in a trade war that threatens to upend global supply chains.
US stocks ended a volatile week higher, but the safe haven of gold hit a record high during the session and benchmark US 10-year government bond yields posted their biggest weekly increase since 2001 alongside a slump in the dollar, signalling a lack of confidence in the US.
Trump spares smartphones, computers from his 125% China tariffs
The move will lessen the cost impact on US consumers for a host of popular high-tech products. Read more at straitstimes.com. Read more at straitstimes.com.
