In a move that sent ripples across the tech industry, the Trump administration has granted a key exemption to its sweeping new policy relating to tariffs, sparing a broad range of electronics, including smartphones, computer monitors, and critical electronic components. According to a U.S. Customs and Border Protection notice posted late Friday, the exemption applies retroactively to goods entering the country or being released from bonded warehouses as of April 5.
The decision follows President Donald Trump’s recent imposition of a minimum 145% tariff on Chinese imports—a policy that had raised alarm bells across the technology sector, particularly among firms reliant on Chinese manufacturing.
Relief for Apple, Nvidia, and the broader tech sector
Apple, one of the largest U.S. companies affected by Chinese manufacturing tariffs, stood to be significantly impacted before the exemption was announced. Industry analysts estimate that roughly 90% of Apple’s iPhones are produced and assembled in China, making the tech giant especially vulnerable to tariff shocks.
On Saturday, analysts at Wedbush Securities called the tariff exemption “the best news possible for tech investors.”
“Big Tech firms like Apple, Nvidia, Microsoft, and the broader tech industry can breathe a huge sigh of relief this weekend into Monday,” Wedbush said in a statement. “A big step forward for US tech to get these exemptions and the most bullish news we could have heard this weekend… now onto the next step in negotiations on the broader China tariff war, which will take a number of months at least.”
Apple and Microsoft did not immediately respond to BreezyScroll’s request for comment, while Nvidia declined to issue a statement.
Inventory buffer temporarily shields consumers
Counterpoint Research estimates that Apple has up to six weeks of iPhone inventory already in the U.S., a cushion that could help soften short-term price shocks. Without the exemption, prices were expected to rise once that stockpile was depleted, a possibility that had unsettled investors and consumers alike.
Adding to market anxieties, gaming company Nintendo recently postponed U.S. preorders for its upcoming Switch 2 console, citing the “potential impact of tariffs and evolving market conditions.” Initially priced at $450, analysts had projected the tariff-driven price could rise to nearly $600.
Trump hints at more exemptions amid tariff push
Speaking aboard Air Force One on Friday, President Trump hinted that certain exclusions were under consideration.
“There could be a couple of exceptions for obvious reasons, but I would say 10% is a floor,” Trump told reporters.
Despite the Friday notice, the White House has not yet commented on the electronics exemption or whether further industry-specific carve-outs may follow.
Tariffs seen as economic risk despite job creation goals
The Trump administration has framed the tariffs as a strategy to reshore manufacturing and revive domestic production in key sectors. However, economists warn that tariffs often result in higher costs for U.S. consumers, especially when products can’t be easily manufactured domestically.
Semiconductors and microchips, for instance, are overwhelmingly produced in Asia due to high efficiency and lower costs. These parts, now exempt under the latest directive, are critical to nearly every modern device. The exemption is expected to benefit major Asian suppliers like Taiwan Semiconductor Manufacturing Company (TSMC), South Korea’s Samsung Electronics, and SK Hynix.
Trump doubles down on TSMC criticism
Despite the exemption, Trump remains critical of efforts by the Biden administration to support foreign semiconductor firms on U.S. soil. Speaking at a Republican National Congressional Committee event earlier in the week, he slammed the $6.6 billion federal grant awarded to TSMC for its Phoenix-based chip plant under the 2022 CHIPS and Science Act.
“I gave TSMC no money,” Trump said. “If you don’t build your plant here, you’re going to pay a big tax — 25, maybe 50, maybe 75, maybe 100%.”
Looking ahead
With the electronics exemption now in place, tech firms have gained a temporary reprieve—but the broader tariff war with China is far from over. Negotiations are expected to stretch on for months, with the industry watching closely for further developments that could shape the future of global supply chains and American tech leadership.