US excludes smartphones, computers from Trump's reciprocal tariffs

THE Trump administration has granted tariff exclusions for smartphones, computers and other electronics imports supplied largely by China, sparing them from much of President Donald Trump's steep 125% duties.

AI Brief

The Trump administration has excluded smartphones, computers, and other electronics from the 125% tariffs, easing pressure on U.S. tech firms.
The exemptions, retroactive to April 5, suggest concern over the tariffs impact on consumers and popular products.
While Trump defends the tariffs as necessary for global trade reform, critics warn of economic risks and political fallout.

In a notice to shippers, the U.S. Customs and Border Protection agency published a list of tariff codes that will be excluded from the duties. The exclusions are retroactive to 12:01 a.m. on April 5.

The U.S. 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 AAPL.O Dell Technologies and countless other importers.

White House officials did not immediately reply to a request for comment on why the latest tariff exemptions had been made.

But the exemptions suggest an increasing awareness within the Trump administration of the pain that his tariffs had in store for consumers, especially on popular products such as smartphones, laptops and other electronics.

Trump ran for re-election last year largely on a promise to bring down prices that, fueled by inflation from the pandemic and Russia's war in Ukraine, had rocketed and tarnished the economic reputation of President Joe Biden and his Democratic allies.

But Trump also promised as a candidate to impose the tariffs that have become a central part of his economic agenda, and the president has dismissed the turbulence in financial markets and expected price increases arising from the levies as a disturbance that was a necessary part of realigning the global economy and world trading order with his vision.

His so-called "reciprocal tariffs", however, raised fears of a U.S. recession and drew criticism from his fellow Republicans, who do not want to lose control of the U.S. House of Representatives and Senate in next year's midterm elections to Democrats, who have sharply attacked Trump's policies.

Trump, who is spending the weekend at his residence in Florida, told reporters on Friday he was comfortable with the high tariffs on China but respected President Xi Jinping and believed something good would come out of the trade conflict between them.