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Semiconductors, flat-panel displays excluded from Trump's reciprocal tariffs

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Tech company CEOs embracing Trump in second administration

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Trump's 20% fentanyl-related tariffs remain on all Chinese imports

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Latest tariff exclusions suggest growing awareness of consumer pain

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Smartphones, laptops were largest US imports from China in 2024

By David Lawder, Jeff Mason

WASHINGTON/WEST PALM BEACH, Florida, April 12 (Reuters) -

President Donald Trump's administration granted exclusions from steep reciprocal tariffs to smartphones, computers and some other electronics imported largely from China, providing a big break to tech companies like Apple ( AAPL ) that rely on imported products.

In a notice to shippers, the U.S. Customs and Border Protection agency published a list of tariff codes excluded from the import taxes. The exclusions are retroactive to 12:01 a.m. EDT (0401 GMT) on April 5.

The U.S. CBP listed 20 product categories, including the broad 8471 code for all computers, laptops, disc drives and automatic data processing. It also included semiconductor devices, equipment, memory chips and flat panel displays. The notice did not provide an explanation for the move, but the late-night exclusion provides welcome relief to major technology firms such as Apple ( AAPL ), Dell Technologies ( DELL ) and many other importers.

Trump's action also excludes the specified electronics from his 10% "baseline" tariffs on goods from most countries other than China, easing import costs for semiconductors from Taiwan and Apple ( AAPL ) iPhones produced in India.

Wedbush Securities analyst Dan Ives called the announcement "the most bullish news we could have heard this weekend."

"There is still clear uncertainty and volatility ahead with these China negotiations.... Big Tech firms like Apple ( AAPL ), Nvidia ( NVDA ), Microsoft and the broader tech industry can breathe a huge sigh of relief this weekend into Monday," Ives said in an industry note.

Many tech company CEOs

have embraced Trump

as he begins his second term, attending his January 20 inauguration in Washington and celebrating with him afterward. Apple ( AAPL ) CEO Tim Cook hosted a pre-inaugural ball and

has visited

Trump at his home in Florida.

For the Chinese imports, the exclusion only applies to Trump's reciprocal tariffs, which climbed to 125% this week, according to a White House official. Trump's prior 20% duties on all Chinese imports that he said were related to the U.S. fentanyl crisis remain in place.

But the official said Trump will launch a new national security trade investigation into semiconductors soon that could lead to other new tariffs.

White House spokesperson Karoline Leavitt said in a statement that Trump has made clear the U.S. cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones and laptops. But she said that at Trump's direction, major tech firms, including Apple ( AAPL ) and chipmakers Nvidia ( NVDA ) and Taiwan Semiconductor "are hustling to onshore their manufacturing in the United States as soon as possible."

TARIFF PAIN The exemptions suggest an increasing awareness within the Trump administration of the pain his tariffs could inflict on inflation-weary consumers.

Even at a lower 54% tariff rate on Chinese imports, analysts predicted the price of a top-end Apple ( AAPL ) iPhone could jump to $2,300 from $1,599. At 125%, economists and analysts have said U.S.-China trade could largely halt.

Smartphones were the top U.S. import from China in 2024, totaling $41.7 billion, while Chinese-built laptops were second, at $33.1 billion, according to U.S. Census Bureau data.

Apple ( AAPL ) recently chartered cargo flights to ferry 600 tons of iPhones, or as many as 1.5 million, to the U.S. from India, after it stepped up production there in an effort to beat Trump's tariffs, Reuters reported on Friday.

Trump campaigned to win back the White House last year largely on a promise to bring down prices that, fueled by inflation that tarnished the economic reputation of former President Joe Biden and his Democratic allies. But Trump also promised to impose the tariffs that have become central to his economic agenda, and he has dismissed turbulence in financial markets and price increases from the levies as a disturbance necessary to realign the world trading order as he has envisioned. His so-called "reciprocal tariffs," however, raised fears of a U.S. recession and drew criticism from some Republicans, who do not want to lose control of Congress in next year's mid-term elections to Democrats, who have attacked Trump's policies. Trump delayed higher duty rates for 57 trading partners and the European Union last week, leaving most countries with a 10% tariff as they seek to negotiate trade deals with Washington. The U.S. president, who is spending the weekend at his residence in Florida, told reporters on Friday he was comfortable with the high tariffs on China but had a good relationship with President Xi Jinping and believed something positive would come out of the trade conflict between them.

Financial markets were in turmoil again on Friday as China matched Trump's latest tariff increase on U.S. imports to 125%, raising the stakes in a trade war threatening to upend global supply chains. U.S. stocks ended a volatile week higher, but the safe haven of gold hit a record high during the session and benchmark U.S. 10-year government bond yields posted their biggest weekly increase since 2001 alongside a slump in the dollar, signaling a lack of confidence in the U.S.

(Reporting by David Lawder in Washington, Jeff Mason in West Palm Beach, Florida; Additional reporting by Ismail Shakil in Ottawa; Writing by David Lawder and Patricia Zengerle; editing by Don Durfee, Mark Heinrich and Paul Simao)