Trump's latest move is set to impact the tech industry positively, mitigating concerns about rising gadget costs as companies like Apple work to diversify their manufacturing across global markets.
President Trump has revealed that smartphones and computers will be exempt from new reciprocal tariffs, as detailed by US Customs and Border Patrol in a notice published recently. This development comes in response to fears from US tech companies that soaring prices could result from the imposition of 125% levies on Chinese imports. In addition to smartphones and computers, other electronic devices—including semiconductors and memory cards—are also excluded from the proposed 10% global tariff on numerous countries.
Apple, a giant in the smartphone market, relies heavily on China for production, with as much as 80% of its iPhones intended for the US being manufactured there. In recent shifts, companies like Apple and Samsung are looking to diversify their supply chains, with India and Vietnam leading the charge for new manufacturing hubs. Reports suggest Apple is actively increasing its production of devices made in India in light of these tariff changes.
Earlier this week, Trump had initially planned to enforce extensive tariffs worldwide but reversed his decision, opting for a 90-day pause on higher tariffs for countries that had not retaliated against US tariffs. As a result, only China, facing a significant tariff increase to 145%, continues to be impacted. The White House has framed this strategy as a negotiating tactic aimed at securing better trade terms globally.
With Trump asserting that his import taxes aim to rectify unfair advantages in global trade, tech consumers will be watching closely to see how these developments affect prices and product availability in the coming months.
President Trump has revealed that smartphones and computers will be exempt from new reciprocal tariffs, as detailed by US Customs and Border Patrol in a notice published recently. This development comes in response to fears from US tech companies that soaring prices could result from the imposition of 125% levies on Chinese imports. In addition to smartphones and computers, other electronic devices—including semiconductors and memory cards—are also excluded from the proposed 10% global tariff on numerous countries.
Apple, a giant in the smartphone market, relies heavily on China for production, with as much as 80% of its iPhones intended for the US being manufactured there. In recent shifts, companies like Apple and Samsung are looking to diversify their supply chains, with India and Vietnam leading the charge for new manufacturing hubs. Reports suggest Apple is actively increasing its production of devices made in India in light of these tariff changes.
Earlier this week, Trump had initially planned to enforce extensive tariffs worldwide but reversed his decision, opting for a 90-day pause on higher tariffs for countries that had not retaliated against US tariffs. As a result, only China, facing a significant tariff increase to 145%, continues to be impacted. The White House has framed this strategy as a negotiating tactic aimed at securing better trade terms globally.
With Trump asserting that his import taxes aim to rectify unfair advantages in global trade, tech consumers will be watching closely to see how these developments affect prices and product availability in the coming months.
