Trump excludes smartphones, computers, chips from higher tariffs

Concerns for IT behemoths like Apple, Nvidia, and Samsung have subsided as a result of President Donald Trump's administration exempting computers, smartphones, and semiconductor chips from new tariffs.

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According to U.S. Customs and Border Protection, these electronics are exempt from Trump's 125% tariff on China and the 10% base tax on the majority of other nations.

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Key commodities that are mostly imported from China are covered, such as laptops, hard drives, computer processors, memory chips, and flat-panel displays.

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The move was made in response to market volatility and concerns that tariffs would raise the cost of consumer devices, such as iPhones, which are primarily made abroad.

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Machines used in the manufacturing of semiconductors are also exempt, which helps businesses like Taiwan Semiconductor Manufacturing Co., which is growing in the United States.

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Uncertainty persists since Trump intends to launch a national security probe into chips in spite of the carveouts, which may result in more tariffs.

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As IT companies push for onshore production in the face of global supply chain issues, the trend reflects pressure to strike a compromise between trade policies and consumer costs.

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