Intro LO:
Apparently, the Trump Administration fears that computers and mobile phones from Apple and Samsung will become too expensive for Trump voters – and themselves.
The Bloomberg comment that these “exclusions [were] published late Friday” implies that this was – again – a deliberate move that was supposed to be overwhelmed by other news.
In short, Big Tech appears to have scored a major victory against Trump-2025‘s import tariffs because it takes (a lot of) time to change supply chains, like from China towards other locations (eg, BBC, CNBC, Fortune, Nikkei, Times of India, WSJ).
Yesterday’s very interesting WSJ comment seemed to have reached a listening ear:
“Apple’s China-Centric Supply Chain, Once Its Greatest Asset, Is Now a Liability. The iPhone-maker, a pioneer of globalization that helped build China’s manufacturing economy, now faces a steep profit hit from tariffs
Source: Wall Street Journal, 11 April 2025
The last line in this Bloomberg article may, however, spell trouble ahead: “The White House didn’t immediately respond to a request for comment.”
Did Trump actually know about this tariff exemption?? See my updates below for the answer.
UPDATE-3:
- BBC, 14 April 2025: Trump threatens new tariffs on smartphones days after exempting them;
- Mashable Tech, 13 April 2025: Trump admin already walks back smartphone, laptop tariff exemption.
UPDATE-2:
- Bloomberg, 13 April 2025: Apple Was on Brink of Crisis Before Tariff Concession From Trump
UPDATE-1:
- AP News, 12 April 2025: Smartphones and other electronics will be excluded from President Trump’s tariffs;
- the Hill, 12 April 2025: Trump exempts phones, computers, other electronics from reciprocal tariffs;
Washington Post, 12 April 2025: Phones, other electronics exempt from new tariffs, Trump administration says; - WSJ, 12 April 2025: Trump Exempts Smartphones, Other Electronics From Chinese Tariffs
Bloomberg Breaking News: Trump Exempts Phones, Computers, Chips From ‘Reciprocal’ Tariffs
By: Debby Wu, Shawn Donnan, and Josh Wingrove
Date: 12 April 2025
“President Donald Trump’s administration exempted smartphones, computers and other electronics from its so-called reciprocal tariffs, potentially cushioning consumers from sticker shock while benefiting electronics giants including Apple Inc. and Samsung Electronics Co.
The exclusions, published late Friday by US Customs and Border Protection, narrow the scope of the levies by excluding the products from Trump’s 125% China tariff and his baseline 10% global tariff on nearly all other countries.
The exclusions would apply to smartphones, laptop computers, hard drives and computer processors and memory chips. Those popular consumer electronics items generally aren’t made in the US. Setting up domestic manufacturing would take years.
The products that won’t be subject to Trump’s new tariffs also include machines used to make semiconductors. That would be important for Taiwan Semiconductor Manufacturing Co., which has announced a major new investment in the US as well as other chipmakers.
The tariff reprieve may prove fleeting. The exclusions stem from the initial order, which prevented extra tariffs on certain sectors from stacking cumulatively on top of the country-wide rates. The exclusion is a sign that the products may soon be subject to a different tariff, albeit almost surely a lower one for China.
One such exclusion was for semiconductors, to which Trump has regularly pledged to apply a specific tariff. He hasn’t yet done so but the latest exclusions appear to correspond with that exemption. Trump’s sectoral tariffs have so far been set at 25%, though it’s not clear what his rate on semiconductors and related products would be.
The White House didn’t immediately respond to a request for comment.”
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