Trump administration to exclude some electronics from reciprocal tariffs

The Trump administration said they would exclude electronics like smartphones and laptops from reciprocal tariffs, a move that could help keep the prices down for popular consumer electronics that aren’t usually made in the U.S.

It would also benefit big tech companies like Apple and Samsung and chip makers like Nvidia.

U.S. Customs and Border Protection said items like smartphones, laptops, hard drives, flat-panel monitors and some chips would qualify for the exemption. Machines used to make semiconductors are excluded too. That means they won’t be subject to the current 145% tariffs levied on China or the 10% baseline tariffs elsewhere.

It’s the latest tariff change by the Trump administration, which has made several U-turns in their massive plan to put tariffs in place on goods from most countries.

The goal is to encourage more domestic manufacturing. But the exemptions seem to acknowledge that the current electronics supply chain is virtually all in Asia and it will be challenging to shift that to the U.S. For example, about 90% of iPhones are produced and assembled in China, according to Wedbush Securities.

The move takes off “a huge black cloud overhang for now over the tech sector and the pressure facing U.S. Big Tech,” said Wedbush analyst Dan Ives in a research note.

Trump previously said he would consider exempting some companies from tariffs.

Neither Apple nor Samsung responded to a request for comment early Saturday. Nvidia declined to comment.

The White House did not immediately respond to a request for comment.

SOURCE: AP