Recent announcements regarding tariff exemptions for electronics such as smartphones and laptops are seen as a temporary measure as the Trump administration plans to introduce a more targeted tariff strategy for the semiconductor sector, according to US Commerce Secretary Howard Lutnick. Over the weekend, White House officials, including President Donald Trump, played down the impact of these exemptions, which are designed to alleviate but not eliminate the tariff burden on essential consumer electronics.
Lutnick clarified on ABC’s “This Week” that electronics are still subject to upcoming tariffs related to semiconductors, which are expected to be implemented in the next month or two. Trump further added to the confusion by stating on social media that there would be no true exemption, as these goods would merely be reclassified and still face a significant tariff—20%—enacted as part of broader measures against China associated with fentanyl trafficking.
The Trump administration’s previous decision to exempt certain electronics from reciprocal tariffs was meant to help mitigate price increases for consumer products that are typically not manufactured in the US. Following this announcement, China’s commerce ministry responded positively, albeit urging the US to eliminate other tariffs entirely.
The exclusion of electronics is forecasted to benefit major technology companies, including Apple and Samsung, as well as chip manufacturers like Nvidia, despite concerns that ongoing uncertainty around tariffs may dampen any anticipated surge in tech stocks. Items such as smartphones, laptops, and hard drives will qualify for these exemptions, whereas machinery used for semiconductor production will not.
This policy marks yet another shift in the Trump administration’s fluctuating approach to tariffs on goods from various countries. During a flight on Air Force One, Trump promised reporters more detailed information on future exemptions and also indicated that the administration is reviewing the entire electronics supply chain.
Some analysts suggest that the exemption signals a recognition by the president that his tariffs might not result in significant shifts of manufacturing operations for devices like smartphones and computers back to the US anytime soon. Although the administration had hoped to encourage Apple to manufacture iPhones domestically, such a scenario appears increasingly unlikely, given Apple’s established supply chain in China, which has taken decades to develop.
Relocating these operations to the US could take years and require significant investments, potentially tripling production costs and affecting the pricing of flagship products like the iPhone. Requests for comments from Apple, Samsung, and Nvidia over the weekend yielded no responses.