In a major policy pivot aimed at calming market anxiety and shielding consumers from skyrocketing prices, the Trump administration announced late Friday that a wide array of electronics — including smartphones, laptops, computer chips, and routers — will be exempt from its sweeping tariffs on China and other nations.
U.S. Customs and Border Protection released a formal notice listing 20 categories of products excluded from the new 145% tariffs on Chinese goods and a 10% minimum tariff on imports from other countries. The move is expected to benefit both consumers and major U.S. tech companies like Apple and Nvidia, whose global supply chains are heavily reliant on overseas manufacturing.
Relief for Consumers and Tech Giants
The exemption comes as a relief to millions of Americans who were bracing for significant price hikes on everyday electronics. Analysts had warned that tariffs could have sent the cost of iPhones and other high-tech devices soaring. One projection even estimated a future iPhone could cost as much as $3,500 if Apple were forced to move its manufacturing out of China.
Apple, whose devices are largely assembled in China, is seen as a primary beneficiary of the exemption. The company recently pledged a $500 billion investment over the next four years to expand its U.S.-based operations — a move likely aimed at both political goodwill and long-term stability in a volatile trade environment.
Nvidia, another giant in the tech sector, also stands to gain from the decision, given its dependence on global semiconductor supply chains.
Tariffs Shake Markets and Spur Partial Reversal
The exemption follows a week of intense economic turbulence triggered by President Donald Trump’s announcement of sweeping global tariffs. Initially, Trump had set the China tariff rate at 125%, but the White House later clarified the full rate would be 145% when earlier tariffs were included.
The escalation set off a dramatic response in global markets, with Wall Street entering a steep decline and international investors expressing deep concern over the potential for a long-lasting trade war. Amid growing pressure, Trump reversed course on many of the tariffs, pausing most for 90 days — with the notable exception of those targeting China.
“I thought that people were jumping a little bit out of line. They were getting yippee, you know, they were getting a little bit yippee. A little bit afraid,” Trump said Friday, acknowledging that the market collapse influenced his decision.
Despite the pause, a baseline 10% tariff remains in place on many foreign imports, and tariffs on goods from Canada and Mexico not covered under the U.S.-Mexico-Canada Agreement will stay active.
China Responds with Retaliation, Harsh Words
In response to the latest U.S. tariffs, China hiked its own tariffs on American goods to 125% Friday, calling the ongoing escalation “a joke in the history of world economy.”
Beijing’s finance ministry issued a scathing statement, accusing Washington of pushing the trade dispute beyond rational economic grounds. China has long vowed to match U.S. tariff hikes tit-for-tat, and it shows no signs of backing down.
Still, President Trump struck a more conciliatory tone Friday, saying he is open to negotiations. “We’re always ready to make a deal,” he told reporters, suggesting that high tariffs are a bargaining tool to pressure foreign governments into fairer trade agreements.
Global Fallout and Diplomatic Outreach
The Trump administration claims 75 countries have reached out to discuss new trade deals, with 15 already putting forward proposals. Trump has held talks with leaders from Japan, South Korea, and Vietnam in recent days to shore up alliances and stabilize trade relations in the Indo-Pacific.
Next week, Italian Prime Minister Giorgia Meloni is expected to visit Washington to discuss trade and potentially mediate a deeper rift between the U.S. and the European Union, which has been critical of the sweeping tariffs.
