Computers, Phones, and Chips Are Now Exempt From Tariffs

The Trump administration is no longer including smartphones, computers, and some other electronic devices in its wave of “reciprocal tariffs,” according to a new bulletin released by US Customs and Border Protection. 

It appears the new order will apply to goods coming from China, which was hit by a 145% levy, and produces many of the world’s smartphones. China was not included in the Trump administration’s 90-day pause on reciprocal tariffs earlier this week.

The tariff exclusions will apply retroactively from 12:01 a.m. on April 5. As per the bulletin, semiconductors also seem to be excluded from the basic 10% tariff levied on most of the US’ trading partners. The bulletin doesn’t mention product category names directly but uses the broad product codes the agency uses to classify different types of imported goods. 

The news comes as concerns mount over the impact of tariffs on US smartphone buyers, many of whom favor smartphones like Apple’s iPhones, which are primarily manufactured in China.

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If the tariffs stand, some analysts claim we could see prices over $2,300 for high-end iPhones. Meanwhile, the Consumer Technology Association predicted that laptop prices could rise as much as 45%. Some laptop manufacturers, including Acer, imposed preemptive price hikes.

Trump has not addressed the news on Truth Social (his last post is a video of Hillary Clinton). The White House posted a rather dry statement on its website that says the tariff exemption on semiconductors actually applies to a wide variety of other products. The White House lists them by their Harmonized Tariff Schedule number; we looked them up and listed them below.

• 8471: Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data.

• 8473.30: Parts and accessories for the machines covered by 8471.

• 8486: Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; the manufacture or repair of masks and reticles; assembling semiconductor devices or electronic integrated circuits; and lifting, handling, loading or unloading of boules, wafers, semiconductor devices, electronic integrated circuits and flat panel displays.

• 85171300: Smartphones

• 85176200: Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.

• 85235100: Solid-state non-volatile storage devices.

• 8524: Flat panel display modules, whether or not incorporating touch-sensitive screens.

• 85285200: Monitors capable of directly connecting to and designed for use with an automatic data processing machine covered by 8471.

• 85411000: Diodes, other than photosensitive or light-emitting diodes (LED).

• 85412100: Transistors, other than photosensitive transistors with a dissipation rate of less than 1 W.

• 85412900: Other unmounted chips, dice and wafers with an operating frequency not less than 30MHz.

• 85413000: Thyristors, diacs, and triacs, other than photosensitive devices.

• 85414910: Other diodes, unmounted chips, dice and wafers.

• 85414970: Transistors

• 85414980: Optical coupled isolators

• 85414995: Other semiconductor devices

• 85415100: Light-emitting diodes (LED)

• 85415900: Other unmounted chips, dice and wafers

• 85419000: Parts of diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, light emitting diodes and mounted piezoelectric crystals.

• 8542: Electronic integrated circuits

The White House claims that 75+ countries have reached out to “make a deal” on trade, but the administration has declined to say which countries. Earlier this week, Sen. Catherine Cortez Masto (D-Nev.) highlighted the complexities of negotiating international trade deals from scratch, saying: “Let’s be realistic.”

About Will McCurdy

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