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In a relief move for Apple and other tech companies, the Trump administration has temporarily exempted smartphones, computers, and several other electronics from newly imposed reciprocal tariffs.
Electronic Devices Get a Reprieve from 10% Global Tariff
The U.S. Customs and Border Protection issued a notification explaining that several high-tech products — including smartphones, laptops, memory chips, hard drives, and flat-screen displays — will not be subject to the new 10% global tariff.
These items, primarily manufactured in Asia and imported into the U.S., will benefit from the exemption retroactively from April 5.
Apple Avoids Tariff Blow, For Now
The decision is a major relief for Apple, which had been under pressure due to its heavy dependence on Chinese manufacturing. Although the tech giant is still affected by older tariffs (up to 20%) on Chinese imports, the latest move shields its core products like the iPhone and MacBooks from an additional 125% import tax.
White House Press Secretary Karoline Leavitt emphasized that President Trump wants to reduce America’s reliance on China for essential technologies like chips, smartphones, and semiconductors. She added that tech firms are being encouraged to bring their production back to U.S. soil as quickly as possible.
U.S. consumers had been bracing for a surge in prices for electronics due to tariffs. The iPhone, in particular, faced potential price hikes. Analysts warned that the iPhone 16 Pro Max could cost nearly $2,000 if Apple passed on the extra duties. The tariff relief offers temporary comfort to consumers and investors alike.
Apple’s Global Supply Shift: India Emerges as a Key Player
Although Apple has been gradually shifting its supply chain away from China, around 90% of iPhones are still made there. India is emerging as a key manufacturing alternative, with Apple exporting iPhones worth ₹1.5 trillion ($17.4 billion) from the country in FY 2025.
Since March, the company has airlifted 600 tonnes of iPhones from India ahead of the tariff deadline.
Despite Trump’s push for domestic production, analysts caution that building manufacturing infrastructure in the U.S. will take years and cost billions. Key obstacles include a shortage of skilled labor and an entrenched supply chain that remains centered in China.
Apple previously avoided major tariff impacts during Trump’s first term by promising a $350 billion investment in the U.S. and showcasing its Mac production facility in Texas. However, the renewed pressure to relocate iPhone production persists under the new tariff regime.
Following the tariff announcement, tech stocks saw major fluctuations. Apple alone lost over $700 billion in market value. The recent exemption helped stabilize investor sentiment. Dan Ives of Wedbush Securities called the move a “game-changer,” especially for Apple, Nvidia, and other major players.
With the iPhone 17 launch approaching, Apple must quickly finalize a production strategy. While India offers a promising path, avoiding China completely could lead to geopolitical backlash. Balancing production diversification with market access will be Apple’s biggest test moving forward.
