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Tipsheet

President Trump's Latest Move Lets Tech Giants Breathe Easy

Pool via AP

In a strategic move to shield American consumers and key tech industries, the Trump administration has announced that smartphones and computers will be exempt from the latest round of tariffs targeting Chinese imports. The decision, part of President Donald Trump’s broader effort to hold China accountable for unfair trade practices without hampering U.S. innovation, reflects a calculated balance between economic pressure and protecting the American digital economy. While the tariffs will still impact a wide range of goods, the exemption for tech essentials signals the administration’s intent to keep American competitiveness at the forefront. 

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A recent U.S. Customs and Border Protection memo has confirmed that smartphones, computer monitors, and other electronic devices will be exempt from President Trump’s latest tariffs. The exemption applies to products entering the U.S. or being removed from warehouses as early as April 5. Companies like Apple stand to benefit significantly from this decision, as 90 percent of iPhones are manufactured in China, making it one of the most popular devices in the U.S. Other electronic devices and components, including semiconductors, solar cells, flat-panel TV displays, flash drives, and memory cards, are also covered by the exemption. 

This move offers relief to major tech companies like Nvidia and Microsoft. According to the White House, these exemptions gave companies time to shift production to the U.S.

However, the exemption may be temporary. White House deputy press secretary Kush Desai said in a statement that President Trump “has made it clear that America cannot continue to rely on China to produce vital technologies like semiconductors, chips, smartphones, and laptops,” suggesting that tariffs on these items could still be introduced in the near future.

“At the direction of the President, these companies are hustling to onshore their manufacturing in the United States as soon as possible,” Desai said in a statement on Saturday. 

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Counterpoint Research, which tracks global smartphone shipments, reported that Apple has roughly six weeks’ worth of inventory in the U.S. Once that stock runs out, prices on Apple products could rise sharply due to tariffs. However, analysts at Wedbush viewed the tariff exemptions as a significant win, calling it the “best news possible for tech investors.”

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