After caving almost entirely on his plan for “reciprocal tariffs,” President Trump has caved further on his plan for 145% tariffs against China by exempting smartphones, computers and other electronics from his new tax regime.
From CNBC, “Trump exempts phones, computers, chips from new tariffs”:
President Donald Trump exempted smartphones, computers, and other tech devices and components from his reciprocal tariffs, new guidance from U.S. Customs and Border Protection shows.
The guidance, issued late Friday evening, comes after Trump earlier this month imposed 145% tariffs on products from China, a move that threatened to take a toll on tech giants like Apple, which makes iPhones and most of its other products in China.
The guidance also includes exclusions for other electronic devices and components, including semiconductors, solar cells, flat panel TV displays, flash drives, and memory cards.
[…] The 20 product categories listed in the CBP guidelines are apparently exempt from the 125% tariff imposed by Trump on Chinese imports and the 10% baseline tariff on imports from other countries. A 20% tariff on all Chinese goods remains in effect.
[…] The exemptions are a win for tech companies like Apple, which makes the majority of its products in China. The country manufactures 80% of iPads and more than half of Mac computers produced, according to Evercore ISI.
“This is the dream scenario for tech investors,” Dan Ives, global head of technology research at Wedbush Securities, told CNBC. “Smartphones, chips being excluded is a game changer scenario when it comes to China tariffs.”
Of course, the tariffs are a nightmare for other companies and small businesses that rely on Chinese imports but don’t have the lobbying chops to get their favored goods exempted.
Perhaps such businesses could secure exemptions too if they got together and agreed to fund Trump’s “Presidential Task Force to Combat Anti-Semitism.”
Source: Information Liberation
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