After imposing 145% tariffs on goods from China and temporarily suspending others, the White House says certain techs like phones, computers, and processors will be exempt from the additional import tax.
The 145% tariff came as a response to reciprocal tariffs from China, resulting in a new, higher tax on incoming goods. It’s widely known that most consumer devices carry some, if not most, of their components from China, as well as labor costs. A 145% tariff on smartphones, computers, and the components within would increase consumer prices exponentially. That cost would undoubtedly be passed on to the consumer unless companies decide to absorb some of the cost.
As people have begun buying up certain tech in fear of the oncoming tariffs, it seems the pressure is being felt by large companies. According to a report from CNBC, Trump announced that a long list of tech imports like smartphones and computers would be exempt from the 145% tariff on China.
This move is said to be in place to give companies time to move production to the US. The list of affected items includes smartphones, computers, monitors, certain TVs, and more. These coded items are classified under the Harmonized Tariff Schedule.
The new exemption does not mean that no tariffs are in place. According to CBP guidelines, it seems a 20% tariff will still remain on Chinese goods imported into the US, while the additional 125% will be dropped for the time being. This, however, does not mean the heavy tariff will be dropped forever, and this could change rather soon.
This change would affect companies like Apple who rely on heavy manufacturing in China the most. Companies like Google or Samsung might not see the same effect as those devices generally come from India and Vietnam. OnePlus also might not see the same issues as those phones are assembled in India and then distributed, though the bulk of manufacturing happens in China.
It isn’t clear as to whether or not tariffs on other countries after the 90-day pause would also exempt certain tech products and components.
The key takeaway at the time of writing seems to be that smartphones and components manufactured in China likely won’t skyrocket in price due to the tariff exemption. Still, some devices are already seeing price increases in preparation for changing costs.
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