The US Customs and Border Protection has issued a new guidance that relieves consumers and companies alike and it exempts a variety of tech products from paying hefty tariffs. According to the latest guidance, smartphones, computers, and chips imported to the United States no longer need to pay tariffs.
China, the biggest tech products manufacturer in the world, was recently hit with a 145 percent tariff by the Donald Trump administration. American companies that rely on China and other overseas manufacturers could face serious struggles if the new tariffs take effect, as they need to pass the extra fee on to final customers or lose a significant part of their profit margin.
In addition to phones, other electronic components and devices are also exempt from tariffs, including semiconductors, solar cells, flat panel TV displays, flash drives, memory cards, and storage drives (via CNBC). The exemption is effective for products that have left the warehouse as of April 5, 2025.
In response to the latest US tariff hike, China also increased reciprocal tariffs on US-made goods and products to 125 percent (via The New York Times) while giving no pass to specific products. It remains to be seen if some specific US products could get a pass from Beijing after Donald Trump exempted a long list of electronic devices from paying tariffs.
The tug-of-war between the United States and China could have a devastating impact on both consumers and companies. Consumers in the United States would have had to pay a significantly extra fee for their electronic devices, and tech firms, on the other hand, could no longer rely on China’s low-cost production facilities to keep their prices competitive.
In addition to China, some other electronic manufacturers, such as Vietnam, India, and Brazil, were also hit with tariffs. For example, Vietnam, which produces a significant chunk of Samsung and Apple products, was hit with a 46 percent tariff. India, the latest manufacturing hub for Apple, was also susceptible to a 27 percent tariff.
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