Tariff Twist: US Exempts Key Electronics, Boosting Consumers and Global Tech Players

Smartphones, Computers, and Chips Spared from "Reciprocal" Tariffs – A Strategic Move with Global Implications

The United States, under the leadership of Donald Trump, has granted exemptions to smartphones, computers, and other electronics from its "reciprocal" tariffs. This move offers potential relief to consumers by mitigating potential price increases while simultaneously benefiting major electronics manufacturers such as Apple Inc. and Samsung Electronics Co.

These exemptions, announced by US Customs and Border Protection, significantly narrow the scope of the imposed levies. They exclude the specified products from the 125 percent China tariff and the baseline 10 percent global tariff affecting numerous other countries.

The exempted products include smartphones, laptop computers, hard drives, and essential components like computer processors and memory chips. These popular consumer electronics are largely not manufactured in the United States, and establishing domestic production would require considerable time and investment.

*Image: Apple iPhone 16 are seen on display at an Apple store.*

Furthermore, machines used in semiconductor manufacturing are also exempt. This is particularly significant for Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which has announced substantial new investments within the United States, alongside other prominent chipmakers. This exemption acknowledges the vital role that companies like TSMC, a major player in Taiwan's tech industry, play in the global supply chain.

This tariff reprieve, however, may be temporary. The exclusions originate from an initial order designed to prevent extra tariffs from accumulating on top of existing country-wide rates for certain sectors. This suggests that these products may face different tariffs in the near future, potentially at a lower rate, particularly for goods originating from China.

Semiconductors are a notable example of this, as Trump has consistently signaled his intention to apply specific tariffs to them. While these haven't yet been implemented, the current exemptions align with this goal. Sectoral tariffs previously imposed by Trump have been set at 25 percent, though the specific rate for semiconductors and related items remains undefined.

The White House has not yet provided a public comment regarding this matter.