- Certain electronics gadgets are now exempt from certain tariffs
- Phones, laptops and processors all get a postponement – which includes China
- It is still not clear what will happen then with electronics prices
There is a new VRI in the US Customs Trade War: phones, computers, semiconductors and various other electronics are now exempt from punishing import tariffs that have shot up to 145% for China and is typically 10% as a baseline for other countries.
The news was reported by Associated Press and others, and while it is still early to say what the full influence will be, it facilitates the pressure on companies that mostly produce their gadgets outside the US – including Apple, Dell, Nvidia and Samsung.
US President Donald Trump introduced a series of tariffs for goods imported to the United States at the beginning of the month and the markets have been in chaos ever since. Earlier this week, a lot of these customs increases were put over 10% baseline paused – but not for China, which raised its own tariffs on its side.
This new exclusion policy covers China and mentions smartphones, laptops, hard drives, computer processors, memory chips and machines used to manufacture semiconductors. Most companies dealing with electronics are breathing in relief, although some unit categories apparently are not covered, including video game consoles.
What happens next?
It has been difficult to predict the movements made by the US government in terms of customs in recent days and that has not changed. This latest step should mean that gadget prices sit down for consumers, but it is impossible to be safe.
Bloomberg reports that the new exclusion policy could be a precursor to a whole separate duty that specifically focuses on electronics. Currently, the world is waiting to see how the 90-day break on many of Trump’s tariffs is playing out.
As an American company that collects almost all of its goods abroad, including in China, Apple has been in the limelight under all this customs uncertainty: There have even been suggestions for Apple factories in the United States and reports on iPhone-Panik purchases ahead of potential price increases.
Apple is one of the companies that it seems will be most benefit, although the move may not be enough to open the Nintendo Switch 2 pre -orders in the US that has been delayed. Consoles like Switch 2 are not mentioned in the new exceptions, although the previous 90-day break should mean that more stocks can be moved to the United States.
