Trump administration excludes smartphones and computers from reciprocity fees

The Trump administration said Friday afternoon that it will exclude electronics such as smartphones and laptops, a move that could help reduce prices for popular consumer electronics that aren’t usually made in the U.S.

The move will also benefit major tech companies such as Apple and Samsung, as well as chip makers such as Nvidia.

The U.S. Customs and Border Protection lists about 20 products that are eligible for exemption. They include hard drives, memory chips, tablet monitors and solid-state storage devices, as well as machines used to make semiconductors.

This means they will not be subject to the 145% tariff currently imposed on China, or the 10% benchmark tariff elsewhere.

Trump has previously said he would consider exempting certain companies from tariffs.

The move gradually disappeared “the huge black cloud in the technology field and the pressure on our large technologies”, Wedbush analyst Dan Ives said in a research note.

Trump’s reciprocal tariffs have raised concerns about the U.S. recession and have been criticized by fellow Republicans who do not want to lose control of the U.S. House and Senate in next year’s midterm elections.

Neither Apple nor Samsung responded to requests for comment earlier Saturday. Nvidia declined to comment.

The notice did not provide an explanation for the Trump administration’s actions, and White House officials did not immediately respond to requests for comment on why the latest tax exemption was imposed.

Trump ran for reelection last year, largely in response to a commitment to lower prices, driven by the pandemic and inflation of Russia’s war in Ukraine, which hurt the economic reputation of then-President Joe Biden and his Democratic allies.

But Trump also pledged to impose tariffs that have become the central part of his economic agenda, and the U.S. president dismissed turbulence in financial markets and expected prices to raise obligations, an essential component of re-forming global economy and world trade with his vision for reshaping the global economy and world trade order.

Since its first launch 18 years ago, Apple has made most of its iPhones in China.

“The concept of making an iPhone in the United States is a concept that doesn’t start,” Ives said, reflecting a widely held view in the investment community, tracking Apple’s every move.

The inhibitory effects of Apple’s transfer of its production at home include the complex supply chain it began building in China in 1990. The situation of building a new factory in the United States takes years, then spending billions of dollars, and then facing the economic power of iPhone prices with Apple, which could triple the price of the iPhone, threatening Torpedo sales of its Marquee products.

Ives estimates that the current price of $1,000 for iPhones made in China or iPhones made in India will soar above $3,000 if production is transferred to the U.S., and he said he believes that domestic shipping production may not be completed until as early as 2028.