Cliff Notes
- The Trump administration has announced that smartphones, laptops, and semiconductor manufacturing machines will be exempt from reciprocal tariffs, aiming to control consumer prices.
- Analysts warn that tariffs on Chinese imports could lead to a significant price surge for iPhones, with estimates of increases up to 43% if costs are passed to consumers.
- The ongoing US-China trade dispute has seen escalating tariffs, with the US raising levies on Chinese goods to as high as 145% amidst increasing tensions.
Smartphones and laptops among items excluded from reciprocal tariffs, US says
Electronics such as smartphones and laptops will be excluded from reciprocal tariffs, the Trump administration has said.
It appears Trump is using a different tactic rather than backing down from his tariffs, which have sent the US economy into freefall.
US Customs and Border Protection added that machines used to make semiconductors and flat-panel monitors would also be exempt.
The move could help keep prices down for popular consumer items that are mainly produced in countries like Taiwan and China – among the hardest hit by Donald Trump’s tariffs.
Tech firms, including Apple, Samsung and Nvidia, have struggled in the stock market since the levies were first announced.
Earlier this week, the head of the trading floor at Currencies 4 You told Newspage that Mr Trump’s tariffs on Chinese imports “could significantly impact iPhone pricing globally”.
Prem Raja noted that analysts suggested “US prices might surge by up to 43% if Apple passes on the costs” to consumers.
The US and China have been locked in an escalating trade dispute since the start of the month, as both countries ratcheted up tariffs on imports.
After Mr Trump announced a 34% levy on China on “Liberation Day,” Beijing responded by introducing tariffs of the same rate on American imports.
The US president then added another 50% tariff atop the 34% and warned China not to retaliate. In turn, Chinese officials called the tariffs “bullying” and raised levies again to 84%.
Mr Trump then raised levies on most Chinese goods to 145% as he paused tariffs higher than 10% for 90 days, prompting Beijing to raise their US import rates to 125%.
This breaking news story is being updated and more details will be published shortly.