Smartphones, computers, electronics imported from China exempt from Trump's tariffs

U.S. President Donald Trump has issued an exception to the tariffs placed on China for smartphones, computers and other electronics imported mainly from China.

Previously, Trump slapped China with a 125 per cent tariff on Chinese imports, which took effect on Apr. 10, bringing the cumulative tariff to 145 per cent.

On Apr. 11, the U.S. Customs and Border Protection agency published a notice to shippers that included a list of tariff codes excluded from import taxes, effective Apr. 5.

The list features 20 product categories, including certain electronics, such as computers and laptops, disc drives, automatic data processing, semiconductor devices, equipment, memory chips, and flat-panel displays.

These products imported from other countries would also be excluded from Trump's 10 per cent "baseline" tariffs, helping with import costs for semiconductors from Taiwan and Apple iPhones produced in India.

When asked about the exemptions, Trump told the media that he would give them answers on Monday, Apr. 14, Reuters reported.

In response to the 145 per cent tariff on Chinese imports, China retaliated by slapping a 125 per cent tariff on U.S. imports.

"At this level, it is no longer possible for U.S. imports to be sold in the Chinese market," said the Chinese Ministry of Finance.

Phones could've been expensive

When the tariffs were first announced, it was noted that American products could get more expensive.

Many American products today are manufactured outside of the U.S. or use materials imported from overseas, so manufacturing them will become more costly thanks to the tariffs.

For example, Apple manufactures many of its products, from iPhones to AirPods, outside the U.S.

Most of Apple's iPhones are made in China.

When Trump initially announced a 54 per cent tariff on imports from China, the New York Times reported that it could increase Apple's costs by US$8.5 billion (S$11.4 billion).

Analysts whom Reuters spoke to, estimated that the price of an iPhone could rise as much as 43 per cent if Apple decides to pass on the costs to customers.

Here's the kicker: The most expensive iPhone 16 model, which is currently priced at US$1,599 in the U.S., could cost nearly US$2,300 (about S$3,000).

However, these new exemptions could help ease the cost.

Top photos via AFP & Canva