The U.S. Customs and Border Protection agency (CBP) listed 20 product categories, including the very broad 8471 code for all computers, laptops, disc drives and automatic data processing. It also included semiconductor devices, equipment, memory chips and flat panel displays. The notice did not provide an explanation for the Trump administration’s move, but the late-night exclusion provides welcome relief to major U.S. technology firms, including Apple , Dell Technologies and many other importers.
Trump’s action also excludes the specified electronics from his 10 per cent “baseline” tariffs on goods from most countries other than China, easing import costs for semiconductors from Taiwan and Apple iPhones produced in India.
Favor to China?
For the Chinese imports, the exclusion only applies to Trump’s reciprocal tariffs, which climbed to 125 per cent this week, according to a White House official. The exemptions are not a full reprieve. Other tariffs will still apply to electronics and smartphones. The Trump administration had applied a tariff of 20 per cent on Chinese goods earlier this year for what the administration said was the country’s role in the fentanyl trade.
But the exemptions suggest an increasing awareness within the Trump administration of the pain that his tariffs had in store for inflation-weary consumers, especially on popular products such as smartphones, laptops and other electronics.Even at a lower 54 per cent tariff rate on Chinese imports, analysts predicted that the price of a top-end Apple iPhone could jump to $2,300 from $1,599. At 125 per cent, economists and analysts have said that U.S.-China trade could largely halt.Smartphones were the top U.S. import from China in 2024, totaling $41.7 billion, while Chinese-built laptop computers were second, at $33.1 billion, according to U.S. Census Bureau data.
Is it Permanent Solution?
The exemptions may be short-lived. The Trump administration was preparing another national security-related trade investigation into semiconductors, which would probably also apply to some downstream products including electronics, a person familiar with the matter said. These investigations have previously resulted in additional tariffs, NYT News Service reported.
Earlier, President Trump backtracked from many tariffs he introduced April 2, which he had called “liberation day.” His so-called reciprocal tariffs had introduced taxes that would reach up to 40 per cent on products imported from some nations. After the stock and bond markets plunged, Trump reversed course and said he would pause levies for 90 days.
Because Beijing chose to retaliate against U.S. tariffs with levies of its own, China was the one exception to Trump’s relief. Instead of pausing tariffs on Chinese imports, Trump increased them to 145 per cent and showed no willingness to spare any companies from those fees. In return, China on Friday said it was raising its tariffs on American goods to 125 per cent.
FAQs
Q1. Who is President of USA?
A1. President of USA is Donald Trump.
Q2. Who is Supreme Leader of China?
A2. Supreme Leader of China is Xi Jinping.
