New Developments in US Tariffs: A Reprieve for Tech Giants
Every day brings new developments in US tariffs. Following the imposition of 145% tariffs on products from China, the market reaction seems to have rationalized Washington. This measure risks having repercussions on tech giants like Apple, which manufactures its iPhones and most of its other products in China.
Exemptions for Electronic Devices and Components
Electronic devices and components, including semiconductors, solar cells, flat-screen TVs, flash drives, and memory cards, are no longer subject to these tariffs. Smartphones and computers are also among the devices exempt from the reciprocal tariffs imposed by President Donald Trump.
Retroactive Exemptions for Products Shipped Before April 5, 2025
The articles excluded from Trump's tariffs under the new guidelines are retroactive for products that left the warehouse before April 5, 2025. This allows American exporters to clarify and plan their finances, as they are responsible for paying tariffs when the product arrives at US customs weeks later for processing and clearance.
A Victory for Tech Companies
The exemptions are a victory for tech companies. Since the tariff announcement, the US stock market has plummeted. The yield on 10-year Treasury bonds has surged by over 50 basis points, one of the largest increases ever recorded. This is likely one of the main reasons that prompted the White House to backtrack, granting a 90-day reprieve to most countries in favor of a universal 10% rate, excluding China.
