U.S. exempts smartphones and tech devices from steep China tariffs

In a notable policy adjustment, the United States has officially exempted smartphones, computers, and a range of electronic components from the harsh tariffs previously imposed on imports from China, a move expected to ease cost pressures on American consumers and the tech industry.

The exemptions were announced in a late-Friday bulletin from the U.S. Customs and Border Protection office and apply to various high-tech goods, including smartphones, semiconductors, hard drives, and computer processors. These items had been subjected to a combined tariff burden reaching up to 145%, due to layers of levies introduced by former President Donald Trump.

The changes mark a narrowing of Trump’s earlier broad-based 10% tariff plan, which was coupled with an additional 125% tariff targeting Chinese imports, implemented as part of the administration’s "reciprocal tariff" strategy. The exemptions particularly benefit goods that are rarely produced domestically and for which immediate American manufacturing alternatives do not exist.

Trump’s tariff campaign has primarily aimed at China, citing the need to counteract what Washington sees as unfair trade practices. The latest round of penalties, which came into effect earlier this week, added significant costs to imported electronics, especially from China, further escalating the economic standoff between the two powers.

One of the initial triggers for the tariffs was China’s alleged involvement in the fentanyl trade, prompting an earlier 20% tariff. With the new additions, some imported electronics from China faced a combined tariff of up to 145%.

Although Trump has positioned tariffs as a tool to incentivise domestic manufacturing, analysts suggest it will take years before the U.S. can rebuild the capacity to produce many of the complex components that are currently imported.