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Smartphones exempt from crushing US tariffs, but it's too early to celebrate (Updated)
Published onApril 13, 2025
- The US has announced that a variety of electronics will be exempted from 125% tariffs on China and the 10% tax on imported goods.
- The affected electronics include smartphones, computers, displays, and more.
- That said, electronics will be subject to new tariffs on semiconductors and supply chains.
Update: April 13, 2025 (10:12 PM ET): After announcing relief from reciprocal tariffs for smartphones and other gadgets, US President Donald Trump has warned that a new kind of tariff is coming for devices. “Nobody is getting off the hook,” Mr. Trump said in a Truth Social post on Sunday.
According to Mr. Trump, devices, including smartphones, computers, and others, are just moving to “a different tariff bucket,” wherein the administration will consider levying tariffs on “Semiconductors and the whole electronics supply chain.” Expect to hear more on these new tariffs in the coming weeks.
Original article: April 13, 2025 (01:57 AM ET): President Donald Trump briefly instituted broad tariffs on countries around the world. The president then made a U-turn but maintained tariffs on China. Now, the administration has exempted a variety of electronics from any new tariffs, including levies against China.
The US Customs and Border Patrol (CBP) issued a list of 20 product codes that would be exempt from these “reciprocal” tariffs. Exempted products include smartphones, computers, laptops, displays and projectors (including touchscreens), semiconductors and integrated circuits, LEDs, and solid-state storage.
Trump announced a 125% tariff on China last week, on top of an existing 20% fentanyl-related levy announced earlier this year. If the 125% tariff on China applied to these products, this would’ve meant drastic price increases for Android phones, iPhones, PCs, and more. So, news of a broad exemption is a welcome reprieve for US consumers in light of many tech products being manufactured in China.
Nevertheless, news of an exemption comes as many tech companies seek to diversify their production lines in recent years. Companies like Apple, Samsung, OnePlus, and Google all manufacture at least some of their products in India and/or Vietnam.
The reprieve also comes a little too late for the OnePlus Watch 3. The new watch was originally supposed to retail for $330 but subsequently increased to $550.