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In a late-night development Friday, U.S. Customs and Border Protection released guidance clarifying that smartphones, laptops, and other core tech components will be exempt from President Donald Trump’s new 145% tariffs on Chinese goods, offering critical relief to major U.S. tech firms like Apple.
The decision comes just weeks after Trump’s sweeping tariffs ignited fears of massive price hikes, supply chain chaos, and further economic strain on companies heavily reliant on Chinese manufacturing.
Apple, Tech Giants Dodge Tariff Bullet
The tech exemptions include:
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Smartphones
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Laptops and tablets
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Semiconductors
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Flat-panel TV displays
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Solar cells
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Flash drives and memory cards
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Solid-state drives (SSDs)
Though these products could still face future duties, they are now expected to be far lower than the previously announced 145% rate.
For Apple, which manufactures over 80% of its products in China, the announcement is a major reprieve. Analysts estimate that:
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80% of iPads
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More than half of Mac computers
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And virtually all iPhones are made in Chinese factories.
The company lost over $640 billion in market value in the immediate days following the original tariff announcement, according to CNBC.
A Calculated Exemption Amid Rising Pressure
The exemptions appear to be a strategic move by the Trump administration to soften blowback from Silicon Valley and Wall Street, both of which reacted sharply to the initial tariff plan.
While Trump has long championed trade pressure on China, critics warn that blanket tariffs could backfire on U.S. consumers and companies, especially in tech sectors dependent on globalized supply chains.
Industry analysts say this shift may reflect:
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Concerns over inflation and holiday retail pricing
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Midterm political pressures
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And an attempt to shore up markets ahead of Q3 earnings
“Tariff policy can’t ignore economic reality — especially when the world’s most valuable tech companies are in the crosshairs,” said Evercore ISI trade analyst Lisa Moran.
What This Means for Consumers
Had smartphones and computers been subject to the full 145% tariff:
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Prices on flagship smartphones like the iPhone could have risen by $300–$500 per device
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Laptops and gaming consoles might have seen 10–25% price increases
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Tech innovation and U.S. competitiveness may have slowed due to supply chain strain
The guidance averts those outcomes — at least for now.
What’s Next?
Though the tech industry has secured a temporary win, trade watchers say this is far from over. Additional duties could still be imposed, and China may yet retaliate.
As markets continue to react and negotiations evolve, all eyes are on whether Trump will maintain this delicate balance between “America First” trade policy and the reality of global tech dependence.
For now, iPhones stay cheap. But the tariff war isn’t done.
