Trump releases tariffs on computers and cell phones, even those from China.
Big US tech companies feared that the price of their gadgets, like the iPhone, would triple with the taxes.
BarcelonaThe administration of US President Donald Trump has exempted smartphones from reciprocal tariffs (smartphones) and computers, andincluding the 145% levy on Chinese importsThe US customs agency published a notice last night explaining that these products would be excluded from Trump's global 10% tariff on most countries, as well as the much higher import tax on Chinese goods.
The move follows concerns from major US tech companies that the price of their devices, such as the iPhone, which are often manufactured in China, could skyrocket. The exemptions also include other electronic devices and components such as chips, semiconductors, solar cells, and memory cards.
Some estimates suggested that prices for iPhones and other electronics in the US would have increased at least threefold if the costs of the tariffs had been passed on to consumers. The US is an important market for Apple, accounting for more than half of its global smartphone sales last year, according to Counterpoint Research. Up to 80% of Apple iPhones sold in the United States are manufactured in China, and the remaining 20% in India. However, like other smartphone giants such as Samsung, Apple has been trying to diversify its supply chains to avoid over-reliance on China in recent years. In fact, India and Vietnam have emerged as additional manufacturing hubs.
Production Shifts
As the tariffs went into effect, Apple reportedly attempted to accelerate and increase its production of devices produced in India, after Trump announced tariffs, at varying rates, in most countries around the world. But on Wednesday, the US president quickly reversed course and announced that he would implement a 90-day pause in countries affected by tariffs, except for China, on which he raised tariffs to 145%. Trump said the increase in Chinese tariffs was due to the country's willingness to retaliate with its own 84% tariff on American goods.
In a dramatic policy shift, Trump said all countries that had not retaliated against US tariffs would be given a reprieve, and would only face a blanket 10% tariff until July.
