Trump exempts smartphones and computers from tariffs in huge win for China and tech giants
12 April 2025, 15:59 | Updated: 12 April 2025, 16:29
Donald Trump has exempted smartphones, laptops and other electronic goods from tariffs, in a major victory for China and big tech firms.
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The US said that these goods would not be part of the 10% import taxes imposed on most countries, nor on China, which faces 145% tariffs.
It comes amid concerns that Trump's tariffs would cause the cost of electronics parts to skyrocket.
Also exempt are key components such as semiconductors and memory cards.
The announcement, made late on Friday, is set to benefit big tech companies such as Apple and Samsung.
Over 80% of Apple products are said to be made in China, including over 80% of iPads and half of Mac computers.
Read more: UK would need ‘extraordinary’ deal to improve 10% tariff, Trump adviser suggests
The US is a huge market for Apple products, so an import tax that would hit China heavily would have a major impact.
Apple's stock price has plunged since the tariff announcement.
The aim of tariffs was to boost the US economy and the manufacturing sector in particular, but experts warned that it would take years to ramp up production to meet demand.
It is unclear if the tariff exemption is permanent.
The news comes after an adviser to the president suggested that it would take an "extraordinary deal" for the UK to improve on the 10% tariff Mr Trump announced earlier this month.
Sir Keir Starmer's government still hopes an economic deal with America can be reached to soften the blow of tariffs.
Most countries now face the same 10% rate as the UK on importing goods to America after the US president temporarily halted the sweeping "retaliatory" tariffs which had sent global markets into turmoil.
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Kevin Hassett, a senior economic adviser to Mr Trump, said any deal that would persuade the president to go below that would need to be "extraordinary".
"I think everybody expects that the 10% baseline tariff is going to be the baseline," he told CNBC.
"It is going to take some kind of extraordinary deal for the president to go below there."
He said the White House was in negotiations with around 20 countries and that two deals were almost closed.
The Prime Minister earlier said his team were in contact with Mr Trump's team every day.