Smartphones, computers and other electronics have been exempted from the Trump administration’s escalating trade war with China.
According to a notice published late Friday by the U.S. Customs and Border Protection office, a host of popular high-tech products germane to the American consumer won’t be subject to tariffs and will buffer the public from cost increases for items ubiquitous in everyday life.
Before the administration made the smartphone and electronics exemptions, Apple’s popular iPhone – most of which are manufactured in China – could have seen massive price increases, depending on how Apple responds to the sweeping levies.
Experts predict the cost could jump hundreds of dollars.Â
The iPhone 16 Pro Max 256 GB, which retails for $1,199, would jump to $1,874, an April 9 analyst from UBS Investment Research shows.Â
The notice details exemptions that cover various electronic goods, including smartphones and components entering the United States from China.
China and the United States have traded tariff increases over several days. China said on Friday it would raise tariffs on U.S. goods from 84% to 125%. The higher tariffs were scheduled to go into effect on Saturday, and China said it would not respond to future U.S. tariff hikes.
President Trump’s universal tariffs on China now total 145%, after pausing tariffs on most other countries for 90 days after global stock markets plunged – and the bond market had a hostile reaction to the tariffs.
Experts had said tariffs raised the risks of a recession and would likely reignite inflation.
These electronics are still subject to the 20% tariff on China related to fentanyl, according to White House Deputy Chief of Staff on Policy Stephen Miller. Tariffs announced by the Trump administration on Feb. 1 were intended, in part, to stop fentanyl from being shipped into the United States from Mexico, Canada and China. Many tariffs have been paused for negotiations since the initial announcement.
White House Press Secretary Karoline Leavitt said in a statement on Saturday that Mr. Trump has “made it clear America cannot rely on China to manufacture critical technologies.”
“That’s why the President has secured trillions of dollars in U.S. investments from the largest tech companies in the world, including Apple, TSMC, and Nvidia,” she said. “At the direction of the President, these companies are hustling to onshore their manufacturing in the United States as soon as possible.”Â
Megan Cerullo,
Aaron Navarro,
Haley Ott and
Aimee Picchi
contributed to this report.