- Trump’s tariff exemptions for smartphones, laptops, chips, and semiconductor equipment, backdated to April 5, shield companies like Apple, Nvidia, Samsung, and TSMC from the 125% China tariff and 10% global tariff, easing consumer price fears.
- The move supports U.S. chipmaking ambitions under the 2022 Chips and Science Act, covering production in Taiwan, Mexico, and beyond, but excludes AirPods and AI-critical GPUs and servers.
- A looming semiconductor import investigation signals potential new tariffs within weeks, suggesting the exemptions are a temporary reprieve as Trump recalibrates his trade strategy.
President Donald Trump’s decision to exempt smartphones, laptops, hard drives, computer processors, memory chips, and semiconductor manufacturing equipment from his reciprocal tariffs offers a critical lifeline to tech giants like Apple (AAPL), Nvidia (NVDA), Samsung Electronics Co., and Taiwan Semiconductor Manufacturing Co. (TSM), while signaling a cautious recalibration of his trade war with China. Published late Friday by US Customs and Border Protection, the exemptions exclude these products from the 125% tariff on Chinese imports and the 10% global tariff on nearly all other countries, covering production in key hubs like Taiwan, Mexico, South Korea, the Netherlands, and Japan. The move, backdated to April 5, shields consumers from price surges on popular devices like iPhones, iPads, Apple Watches, and Airtags – though AirPods remain exposed – addressing fears that fueled preemptive buying sprees. It also supports major chipmakers and equipment suppliers like ASML Holding NV and Tokyo Electron Ltd., whose tools are vital for multi-billion-dollar U.S. factory projects backed by the 2022 Chips and Science Act, including those by TSMC, Samsung, and Intel Corp. (INTC).
The exemptions reflect intense lobbying from a tech industry that has pledged significant U.S. investments, as noted by Wedbush Securities analyst Dan Ives, who highlighted the sector’s influence in overcoming initial White House resistance. By sparing most of Apple’s core products and AI-critical components like CPUs – but not GPUs or servers, primarily built in Taiwan and Mexico – the administration mitigates the risk of further stock market selloffs, which erupted after the tariffs disrupted global markets. For companies less tied to China, like Samsung, the exclusion from the 10% global tariff levels the playing field against competitors like Apple, which faced heightened pressure after Trump’s recent 125% China tariff hike. Yet, the reprieve may be short-lived, as the administration eyes a new investigation into semiconductor imports, likely leading to targeted tariffs within weeks, potentially mirroring the 25% duties recently applied to steel and aluminum.
This softening, the first notable concession in Trump’s China trade conflict, aligns with strategic U.S. goals to bolster domestic chip production while avoiding immediate economic fallout. Industry arguments, echoed by insiders, underscore the impossibility of reshoring smartphone and electronics assembly swiftly, given complex global supply chains. The exclusions ensure that TSMC’s major U.S. investments and Nvidia’s AI infrastructure ambitions remain viable, even as uncertainty lingers over future chip tariffs. By carving out these products, Trump balances short-term consumer and corporate relief with the groundwork for sectoral levies that could reshape the tech landscape, maintaining pressure on China while navigating domestic economic realities.
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