Trump temporarily suspended tech tariffs for Apple and Samsung, but this reprieve might be temporary. Here's the latest update.
A New Twist in Trump's Tariffs
In an unexpected turn of events, President Donald Trump unveiled a list of countries subject to reciprocal tariffs on April 2, triggering a global financial flurry and plunging stock markets worldwide into the red. A week later, on April 9, Trump announced a 90-day suspension of reciprocal tariffs for several countries on the list that didn't retaliate with increased tariffs on the U.S.
This brief respite provided some much-needed relief to overseas companies conducting trade with the U.S. and based in the affected countries, or those manufacturing products in nations like Vietnam, which faced a staggering 46% tariff. Gamers in the U.S. breathed a sigh of relief as well, with concerns about the Nintendo Switch 2's price hike due to tariffs subsiding after the company paused pre-orders.
Late on a Friday evening, the U.S. Customs and Border Protection disclosed a list of goods exempt from the new tariffs. In essence, they omitted tech components like smartphones, laptops, computer processors, memory, hard drives, and various semiconductor manufacturing equipment. Additionally, a sizable number of products related to the production of semiconductors were also included on the exemption list.
Which Tech Products Escape Tariffs?
Here's a rundown of the products immune to tariffs, based on the U.S. Customs list:
- Computers and associated devices
- Computer components
- Equipment for semiconductor manufacturing
- Smartphones
- Networking equipment
- Solid-state storage
- Recorded media
- Computer monitors
- Low-power transistors
- Other transistors
- Thyristors and triacs
- Other diodes
- Optocouplers
- Other semiconductors
- Semiconductor transducers
- Integrated circuits
- Parts of semiconductor devices
Tech Braces for More Turmoil
Although this momentary reprieve may bring some relief to tech giants such as Apple and Samsung, it remains uncertain whether this will be the end of the tariff saga.
On Sunday, Commerce Secretary Howard Lutnick divulged to ABC News that the products being spared from tariffs were merely temporarily excluded. It's unclear whether Lutnick was referring to just semiconductors or all the consumer tech affected, given he persistently referred to semiconductors during the interview.
Displaying his usual assertive tone, Trump emphasized via Truth Social on Sunday that no leniency would be granted in terms of tariffs. He declared, "There was no Tariff 'exception' announced on Friday." He continued, "We are examining Semiconductors and the entire ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations."
Notably, computer manufacturers like Dell, Lenovo, and HP reportedly stopped shipping their computers earlier in the week, according to TechSpot. In an effort to evade pending tariffs, some businesses even expedited shipping massive quantities of their products from China.
These enterprises are grappling with the impact of tariffs imposed on China, which has skyrocketed to a shocking 145%. In response, China raised its tariffs on the U.S. by a staggering 125%. Trump apparently petitioned Chinese President Xi Jinping for a discussion about the tariffs.
- The temporary exclusion of certain tech products from tariffs provides relief to tech giants like Apple and Samsung, but uncertainty lingers about the future of tariffs.
- A quick ban on shipping computers was implemented by manufacturing companies like Dell, Lenovo, and HP, anticipating the upcoming tariffs, according to TechSpot.
- In a bold move, some businesses expedited shipping large quantities of their products from China to evade the impending tariffs.
- The tariffs imposed on China have soared to a staggering 145%, triggering China to raise its tariffs on the U.S. by an equally high 125%.
- Trump reached out to Chinese President Xi Jinping, expressing his concern about the escalating tariffs.
- The U.S. Customs and Border Protection exempted a range of tech components from the new tariffs, including laptops, computer processors, and solid-state storage.
- The tech industry closely monitors policy-and-legislation and general-news regarding the upcoming National Security Tariff Investigations announced by Trump.
- It is essential to review the implications of war-and-conflicts and their impact on the finance sector, given the ongoing tariff disputes between key trading nations.
