Donald Trump exempts chips, smartphones, and computers from reciprocal tariffs
What's the story
US Customs and Border Protection has clarified that smartphones, computers, and chips are exempt from President Donald Trump's recently imposed reciprocal tariffs on Chinese imports.
The clarification comes after Trump imposed steep 125% tariffs on imports from China earlier this week, a move that raised concerns among tech giants like Apple who manufacture most of their products in the country.
The exemption covers various tech products including telecom equipment, chipmaking machinery as well as data processing machines.
Impact
Exemption crucial for semiconductor manufacturing equipment
The exemption from reciprocal tariffs also applies to semiconductor manufacturing equipment.
This is a major decision for firms like Taiwan Semiconductor Manufacturing Co. (TSMC), which has announced major investments in US chip fabrication facilities.
Other global chipmakers are also likely to benefit from this reprieve, as Bloomberg highlighted.
Potential changes
Sector-specific tariffs may be imposed
Bloomberg reports that the current relief from reciprocal tariffs may be short-lived.
The exclusions are linked to the initial tariff order, which prevents the stacking of multiple levies on top of existing country-wide rates.
Experts suggest that these goods might soon face lower, sector-specific tariffs instead—particularly for China.
This is especially true for semiconductors as Trump has signaled plans for a targeted levy, although no specific rate has been imposed yet.
Confusion
Future of tariffs uncertain
Till now, Trump's sectoral tariffs have been capped at 25%. However, it is unclear what rate may be applicable to chips and related components in the future. Bloomberg notes that consumer electronics, which are rarely made in US, would need years to be domestically produced.