The administration of US President Donald Trump has granted a significant exemption from steep reciprocal tariffs on Chinese goods, excluding smartphones, computer monitors, and various electronics from the newly raised 145% import tax.
The exemption, announced by US Customs and Border Protection late on Friday, 11 April 2025, applies retroactively to products imported or removed from bonded warehouses from 5 April.
It also excludes these goods from Trump’s earlier-imposed global tariff floor of 10%, though they remain subject to a separate 20% tariff tied to China’s alleged role in the fentanyl trade, as confirmed by the White House.
Among the items covered are semiconductors, memory cards, solar cells, and other electronic components heavily relied upon by US technology companies.
The decision, seen as the first major reprieve in Trump’s tariff campaign, comes as a relief to US tech giants concerned about skyrocketing costs and disrupted supply chains.
Wedbush Securities, a financial firm that closely tracks the sector, labelled the move “the best news possible for tech investors.”
In a post on 12 April, Wedbush stated, “Big Tech firms like Apple, Nvidia, Microsoft and the broader tech industry can breathe a huge sigh of relief this weekend into Monday.”
It further predicted that the exemption would lay the groundwork for more productive negotiations in what it called “the broader China tariff war,” which it expects to continue over several months.
Wedbush estimates that approximately 90% of Apple’s iPhone production and assembly occurs in China, making the company highly vulnerable to tariffs.
Counterpoint Research, which tracks global smartphone shipments, warned that Apple’s existing six-week inventory in the US could have led to dramatic price increases once exhausted.
Estimates suggested prices of some devices could have risen by up to 50% or more. For example, Nintendo’s Switch 2 gaming console, originally priced at US$450, was predicted to cost as much as US$600 under the new tariff regime.
Nintendo has postponed its US pre-order release while it assesses the tariff impact and evolving market conditions.
In a statement released on Saturday, White House Press Secretary Karoline Leavitt said President Trump remained committed to reducing American dependence on Chinese-made technology.
She stated, “President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops.”
She added that the president had “secured trillions of dollars in US investments from the largest tech companies in the world, including Apple, Taiwan Semiconductor Manufacturing Company (TSMC), and Nvidia.”
These firms, she said, are “hustling to onshore their manufacturing in the United States as soon as possible.”
Apple did not respond to media inquiries, while Microsoft and Nvidia declined to comment.
At a political fundraiser on 8 April, Trump said some exceptions to the tariffs were possible, but reiterated that “10% is a floor.”
Despite the reprieve, economists caution that the broader tariff structure still risks passing costs to consumers, particularly on goods where domestic alternatives are limited.
Products like semiconductors and microchips have long been outsourced to Asia due to lower manufacturing costs. These goods now benefit from the exemption, a move that could aid companies like South Korea’s Samsung and SK Hynix, as well as TSMC.
A White House official stated the administration will soon order a Section 232 study — a national security review — on semiconductor imports.
Meanwhile, Trump has taken aim at rival Joe Biden’s 2022 CHIPS and Science Act, under which the US awarded a US$6.6 billion grant to TSMC for chip production in Phoenix.
Trump, speaking at a Republican National Congressional Committee event on Tuesday, criticised the grant and said he preferred using tariffs as leverage.
“I gave TSMC no money,” Trump claimed. “I told them, if you don’t build your plant here, you’re going to pay a big tax — 25, maybe 50, maybe 75, maybe 100%.”
The administration has argued that its tariff policy is key to reviving US manufacturing and correcting trade imbalances.
While critics point to rising consumer prices and global supply instability, Trump maintains that these measures will bring jobs back and enhance national security.
For now, the tech industry is watching closely as discussions over trade policy and further tariff revisions unfold in the coming months.
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