Smartphones, laptop computers, memory chips and other electronics will be exempt from President Trump ’s so-called reciprocal tariffs , another step back that could ease some consumer concerns about an immediate jump in costs for tech products imported from China.
New guidance published late Friday by U.S. Customs and Border Protection also exempts machines used to create semiconductors, plus products including computer monitors, tablets, Apple watches and computers from the tariffs Trump imposed in his April 2 executive order , which mandated levies of 10% of the value of almost all U.S. imports, and set higher rates on imports from some countries. Trump later boosted the level of these reciprocal tariffs on China to 125%, and issued a 90-day pause on tariffs above 10% for other countries.
In all, 20 categories of products are affected. The biggest impact is on imports from China, because of the heights to which tariff rates had risen in recent days. In addition to the reciprocal tariffs, the Trump administration has imposed tariffs of 20% on Chinese imports over that nation’s role in the fentanyl trade, which the White House said aren’t subject to the exemptions.
The reprieve was the latest twist in a turbulent week for U.S. trade policy and could benefit companies such as Apple , Samsung , HP , Dell Technologies and Microsoft that manufacture electronics outside the U.S. The change could effectively erase the latest tariffs that were imposed on many consumer electronics.
Apple shares have fallen about 11% since Trump’s April 2 tariff announcement. As the U.S. and China subsequently raised tariffs on each other’s products in rapid succession, Apple was among the companies with the most at stake because it makes most of its devices in China .
“My hope would be that they’re pulling back from the brink and finding a way to stabilize markets,” said Adam Thierer, a senior fellow at the R Street Institute think tank focused on technology and innovation. “Technology companies, analysts and investors are breathing a brief sigh of relief and hoping for a return to normalcy.”
Thierer and other experts have warned that tariffs on tech products would undermine the U.S. in its artificial-intelligence race with China. Ongoing trade uncertainty will still be a challenge, he said.
If the exemptions last, they could mark an initial victory for the tech industry in the new Trump administration. Executives flocked to Mar-a-Lago after Trump was elected and donated millions of dollars to his inauguration. So far, their efforts hadn’t resulted in many public victories. Many of the companies continue to face antitrust cases and are lobbying for favorable AI regulation.
Some analysts said the exemptions would lift markets when futures trading opens Sunday evening. “It could be a tech rally for the ages,” said Dan Ives , managing director at Wedbush Securities.
The exempted tech products accounted for roughly $100 billion in U.S. imports from China in 2024, according to Census Bureau data, or 23% of total imports from the country. Last year, 26% of all imports of the excluded products were from China—but 81% of smartphones and 78% of computer monitors came from there.
Trump hinted at exemptions when he spoke to reporters late Friday on Air Force One. “There could be a couple of exceptions for obvious reasons, but I would say 10% is a floor,” Trump said.
Earlier, administration officials said that the tariffs on China would encourage the manufacturing of electronics in the U.S. Commerce secretary Howard Lutnick last Sunday told CBS News that “great American workers” would build and operate new factories in the U.S. and an “army of millions and millions of human beings screwing in little screws to make iPhones, that kind of thing, is going to come to America.”
On Saturday, White House press secretary Karoline Leavitt said that “President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops.” She added, “Companies are hustling to onshore their manufacturing in the United States as soon as possible.”
On Saturday night, Trump told reporters on Air Force One that he will talk more about the exemptions on Monday, adding that “we’ll be very specific.”
Microsoft, Google and Apple declined to comment.
Some analysts say the exemptions highlight the chaotic nature of Trump’s trade policy, adding that it is unrealistic to move manufacturing to the U.S. in many industries because of high labor costs and other factors. There are no substitutes for these products in the U.S. and price increases would be unpopular as consumers have been battered by high inflation in recent years.
“We welcome [this] action on exemptions and encourage the administration to continue to take steps towards a comprehensive exclusion process,” said Sean Murphy, executive vice president of policy at the Information Technology Industry Council, a trade group.
Trump will issue a Section 232 study on semiconductors soon, according to a White House official, referring to a section of trade law that allows a president to adjust imports that pose a threat to national security. Section 232 investigations have resulted in tariffs in the past, and many of the tech products exempted on Friday may be affected if semiconductors face additional levies.
Some tech firms are bracing for more volatility. Lutnick recently called some computer-industry chief executives and told them consumer products would be part of the coming semiconductor action, according to a person familiar with the matter.
Tech executives generally haven’t criticized Trump’s tariffs publicly. Only a few tech companies, including Hewlett Packard Enterprises and Dell Technologies, have reported earnings since trade uncertainty surged in February. They warned that tariff uncertainty would ding business.
Some tech products may still be subject to additional levies, but the exemptions signal that for now, smartphones, chips and other devices won’t face tariffs at the same rate currently imposed on goods imported from China. Trump is still expected to impose tariffs on some additional sectors, such as lumber and pharmaceuticals .
White House officials said they are in the process of negotiating trade deals and have been approached by more than 70 countries, although details have been scarce and it is unclear how much progress has been made. Administration officials said they have held initial discussions with Japan, Taiwan and Israel.
Trump told reporters on Friday he is “very comfortable” with where tariffs are currently set with China but expressed optimism that he will be able to reach some kind of deal with President Xi Jinping .
Sen. Chris Murphy (D., Conn.) criticized the exemptions and Trump’s tariffs on social media as a “regime to reward big businesses like Apple that can make giant contributions to Trump.” Many big companies donated to Trump’s inauguration .
Apple CEO Tim Cook personally donated $1 million to Trump’s inauguration after the election, as did other tech companies and leaders including Meta along with Amazon.com founder Jeff Bezos . Other American corporations also made donations. Cook won several tariff exemptions for Apple in the first Trump administration.
Write to Meridith McGraw at Meridith.McGraw@WSJ.com and Amrith Ramkumar at amrith.ramkumar@wsj.com
