Trump Exempts Phone, Computers, Chips From 'Reciprocal' Tariffs
The exclusions apply to smartphones, laptop computers, hard drives and computer processors and memory chips. Those popular consumer electronics items generally aren’t made in the US.
The exclusions apply to smartphones, laptop computers, hard drives and computer processors and memory chips. Those popular consumer electronics items generally aren’t made in the US.
Bloomberg
Apple, Nvidia Score Reprieve from Trump Tariffs With Exemptions
Debby Wu, Josh Wingrove and Shawn Donnan | Sat, April 12, 2025 at 11:03 AM EDT (Bloomberg) -- President Donald Trump’s administration exempted smartphones, computers, and other electronics from its so-called reciprocal tariffs, representing a major reprieve for global technology manufacturers including Apple Inc. and Nvidia Corp. even if it proves a temporary one.
The exclusions, published late Friday by US Customs and Border Protection, narrow the scope of the levies by excluding the products from Trump’s 125% China tariff and his baseline 10% global tariff on nearly all other countries.
The exclusions apply to smartphones, laptop computers, hard drives and computer processors and memory chips. Those popular consumer electronics items generally aren’t made in the US.
The pause will be welcome news to consumers, some of whom rushed to buy new iPhones and other devices amid fears that the tariffs would send prices soaring. It’s also a big win for major technology companies that have presented massive US spending pledges for Trump in recent months. Trump’s tariffs upended global markets, triggered a selloff in stocks, and ignited a rapidly escalating trade war with China.
The move is the first significant softening of any kind in Trump’s conflict with China. It was backdated to April 5.
“Honestly, I’m very comfortable now” with the China tariffs, Trump told reporters earlier Friday on Air Force One, while touting his relationship with Chinese President Xi Jinping. “And I think something positive is going to come out of that.”
The tariff reprieve may prove fleeting. The exclusions stem from the initial order, which prevented extra tariffs on certain sectors from stacking cumulatively on top of the country-wide rates. The exclusion is a sign that the products may soon be subject to a different tariff, albeit almost surely a lower one for China.
The products that won’t be subject to Trump’s new tariffs include machines used to make semiconductors. That would be important for Taiwan Semiconductor Manufacturing Co., which has announced a major new investment in the US, as well as other chipmakers.
“All products that are properly classified in these listed provisions will be excluded from the reciprocal tariffs,” the notice said.
The move appeared to exclude the products from the 10% global baseline tariff on other countries, including Samsung Electronics Co.’s home of South Korea.
Bloomberg Reporting.Excerpts from a China analyst interview with Channel 4 News, a British Broadcasting Service, on April 11, 2025, ‘China is determined to fight to the very end of the trade war.’
“China is determined to fight to the very end of the trade war.”
‘China has been here for 5000 years. Most of the time, there was no United States, and we survived’ China analyst Victor Gao says that ‘China will fight to the very end’ in a trade war after President Trump hit China with 145% tariffs.
“Scott Galloway breaks down how President Trump’s tariff war will affect American consumers.”
‘We have someone at the wheel of the global economy who is blackout drunk right now.’
“Trump’s Trade War Will Hit US Prosperity Hard, IMF Warns.”
U.S. President Donald Trump's trade war will significantly impact the global economy and has increased the risk of a financial crisis, the International Monetary Fund warned.
"The uncertainty in trade policy, and policy generally right now, is a big drag on global activity," Pierre-Olivier Gourinchas told AFP ahead of Tuesday's publication of the IMF World Economic Outlook report.
"And the sooner we can lift it, the better off everyone will be," he said, adding: "Bringing back stability, clarity, predictability to the trading system is the first order of business."
Trump's new tariffs contribute to nearly half of the significant reduction in the IMF's growth forecast for the US this year. Pierre-Olivier Gourinchas, the IMF's chief economist, mentioned in a blog post that uncertainty surrounding policy has already weakened demand in the US, even before the recent announcements about the tariffs.
Gourinchas noted that the tariffs implemented by Trump have raised the U.S. tariff rate, in real terms, to a level higher than it was during the Great Depression in the 1930s. In response, major trading partners of the U.S. have also increased their tariffs, contributing to a significant rise in the global tariff rate. As a result, global trade, which has consistently supported growth rates and kept inflation in check for the past 35 years, is expected to grow this year at only half the rate that the Fund anticipated just three months ago.
The latest World Economic Outlook was compiled under “exceptional” circumstances, the IMF stated. Trump’s announcement of sweeping tariffs on April 2 “forced us to abandon our projections, which were nearly finalized at that point,” it noted.
The Impact of Tariffs: Global Trade War
Our country and its taxpayers have been taken advantage of for more than 50 years, but that is going to change, Trump stated on Wednesday during a ceremony in the Rose Garden.
On the same day, Trump declared a US economic emergency and announced tariffs of at least 10% on all countries. The rates will be even higher for 60 countries and trading blocs that have a significant trade deficit with the US.Our country and its taxpayers have been taken advantage of for more than 50 years, but that is going to change, Trump stated on Wednesday during a ceremony in the Rose Garden.
On the same day, Trump declared a US economic emergency and announced tariffs of at least 10% on imports from all countries. The rates will be even higher for 60 countries and trading blocs that have a significant trade deficit with the US. According to President Trump, "This is Liberation Day."
Some of the cost of the new taxes will likely be passed on to consumers, with low-income households expected to face the greatest impact, according to an analysis from Yale Budget Lab released on Wednesday.
Households earning an average disposable income of around $43,000—some of the lowest in the nation—are poised to face a significant 2.3% decline in their disposable income due to the tariffs announced on Wednesday. In stark contrast, those in the highest income bracket, with disposable incomes over $500,000, will only experience a minor decrease of 0.9%.
Looking ahead to all tariffs scheduled for 2025, the situation worsens for lower-income households, which could see their disposable income plummet by 4%. Meanwhile, the wealthiest households would face a mere 1.6% reduction. This disparity underscores the disproportionate impact of these tariffs on those who can least afford it.
“A tariff is what we call a regressive tax because it pinches families at the bottom more than it pinches families at the top. ”
President Trump unveils his long-promised, sweeping set of tariffs on imports.
Including tariffs on all imported automobiles of 25% which went into effect at 12:01 am ET on Thursday.
According to the CIA World Factbook, other territories with no economy and no population were also impacted by the sweeping tariffs announced by President Trump.
Australian external territory in the southern Indian Ocean, Heard Island, and McDonald Islands slammed with a 10% tariff, and so are the Cocos Islands 600 inhabitants send 32% of its exports to the US, according to the CIA World Factbook, they now face a 10% tariff.
U.S. trading partners are anticipated to respond with retaliatory actions.
China, which faces a 54% import tax, intends to impose an additional 34% tax on US goods beginning next week.
India on tariffs! 'The era when a few powers underwrote the international system is over. The world is moving to an era of self-help. Every region needs to look out for itself' ~ The external affairs minister of India, S. Jaishankar.
The US Stock Market tumbles on its opening bell Thursday. After-hours stock trading coverage from CNN: Latest updates on post-market movers, S&P 500, Nasdaq Composite and Dow Jones Industrial Average futures.
The universal 10% tariffs are scheduled to take effect on Saturday, April 5. Additionally, further duties—reciprocal tariffs will be imposed on approximately 60 countries starting on April 9.
Reciprocal tariffs are calculated as the tariff rate necessary to balance bilateral trade deficits between the U.S. and each of our trading partners, according to the U.S. Trade Representative. That means they do it to us, and we do it to them, Trump said.
YAME Digital reached out to government functionaries in Freetown to understand the impact of tariffs on Sierra Leone goods entering the United States and the broader implications of this trade war on Africa.
Based on our understanding, Sierra Leone has a small business entity that operates independently, resulting in minimal impact.
YAME Digital is currently gathering data that will be made available to the public soon. Stay tuned!
What online shoppers need to know about the sledgehammer hit to 'the led by direct-to-consumer retailers' such as Temu and Shein Fashion Industry.
Nothing comes cheap anymore! Imported goods sent through the postal network valued at or under $800 would now be subject to a duty rate of either 30% of their value or $25 per item. With the rate increasing to $50 per item after June 1.
The executive order signed on Wednesday closes a trade loophole known as "de minimis," which has allowed low-value packages from China and Hong Kong to enter the United States free of duties.
Temu and Shein imported goods from China and Hong Kong sent outside the international postal network and valued at or under $800 would now be subject to all applicable duties.
The trade surplus that Trump never mentions
The US has a trade surplus from export of services which are now vulnerable to tariffs from the world — Aljazeera
“Ronald Reagan’s Radio Address on Tariffs.”
On April 25, 1987, President Ronald Reagan delivered a radio address from Camp David, Maryland, emphasizing the dangers of tariffs and protectionist trade policies. He warned that while tariffs might initially seem patriotic and beneficial for protecting American jobs and industries, they ultimately lead to negative consequences.
Industry complacency: Domestic industries begin relying on government protection instead of innovating and competing globally.
Retaliation and trade wars: High tariffs provoke other nations to impose retaliatory tariffs, escalating trade conflicts.
Economic decline: Artificially high prices caused by tariffs reduce consumer demand, shrink markets, collapse businesses, and result in widespread job losses.
Reagan drew parallels to the Smoot-Hawley Tariff Act of 1930, which he argued worsened the Great Depression by stifling international trade and economic recovery. He criticized Congress members who prioritized short-term political gains over long-term economic prosperity, noting that millions of American jobs were tied to exports and imports.
In today's America, there is chaos and a lack of effective strategies. Trump's tariffs have caused significant uncertainty and the repercussions of his actions emphasize the enduring impact of his rhetoric.
Theo Edwards for YAME Digital