Trump's olive branch to China? US exempts smartphones & computers from global tariffs

In a significant policy adjustment, the Trump administration has announced exemptions for smartphones, computers, semiconductors, and other high-tech electronics from its newly imposed global tariffs.

The move, revealed in a Saturday notice by the US customs and border protection office, is expected to ease cost pressures on American consumers while tempering the impact of sweeping tariff increases aimed especially at China. The decision marks a partial retreat from the administration’s aggressive “reciprocal tariffs” strategy, as Washington walks a fine line between economic pressure and domestic inflation.

Key points to know: Electronics exempted from tariffs:

• Smartphones, laptops, computer processors, hard drives, and other tech products will not be subject to the recent wave of US tariffs.
  
• These items were previously facing a total tariff of up to 145% when imported from China.

Tariff breakdown on Chinese goods:

• The 145% effective tariff included:
  
  
  • A 125% “reciprocal” tariff introduced this month.
    
  • A prior 20% penalty linked to China's alleged involvement in fentanyl supply chains.
    
  • Additional tariffs from earlier administrations.
    
• These rates were designed to target industries and supply chains where China holds dominant market share.

Semiconductors also spared:

• Semiconductors are excluded from:
  
  
  • The 10% baseline tariff applied to most trading partners.
    
  • The additional 125% tariff specific to China.

Why the exemption matters:

• Many of these components — like chips and processors — are not produced in the US at scale.
  
• Importing them is critical to US tech companies, especially in sectors like consumer electronics, cloud computing, and AI.

No immediate domestic alternatives:

• While Trump has emphasized that tariffs will bring back manufacturing to US soil, experts say building domestic capacity for high-tech manufacturing could take years or even decades.
  
• A sudden enforcement of tariffs on electronics could have disrupted global supply chains and led to price hikes for US consumers.

China remains in focus:

• Despite the exemptions, President Trump continues to frame the tariff regime as a response to China’s trade practices.
  
• He has vowed to keep pressure on Beijing: “We’re not going to let China walk all over us anymore. If they won’t play fair, we won’t either,” he said earlier this week.

Scope of the Policy:

• The exclusions narrow the range of the original 10% global tariffs announced earlier this month.
  
• They also blunt the effect of the China-specific tariffs, which were among the harshest ever applied to electronics.