Summary
- US removes all tariffs on imported electronics from China and globally
- Apple dodges potential setbacks with exemption from 125% tariff
- Uncertainty remains whether the exemption is temporary or permanent, but it’s good news for US tech companies regardless.
Do you hear that noise? That’s the sound of the entire US tech industry collectively sighing in relief. After initially imposing a 125% tariff on all Chinese imports, the US government has now agreed to allow electronics to arrive on American soil without paying extra as an exception to the rule. As it turns out, if Apple had the heat applied to it for a little longer, it would have suffered severe setbacks unlike anything seen since the pandemic days.
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The US government removes all tariffs on imported electronics
In a report from Bloomberg, the US has agreed to remove the tariffs on electronics. This includes both the 125% tariff from China and the global 10% tariff that most countries fall under. The exceptions include:
- Smartphones
- Computers and similar devices
- Machines for data transmission, such as routers
- Computer parts
- Computer monitors
- Integrated circuits and semiconductors
- Machines to manufacture semiconductors
- Flat panel displays and touch screens
- Flash drives and solid-state data storage devices
- Semiconductor devices (including diodes, transistors, LEDs)
It’s unknown whether this exception will stick around forever or will act as a temporary watershed, but given how the US wants all of its electronics produced locally, there’s a good chance it’s simply allowing its big tech companies some extra time to sort themselves out before the tariffs return in full force.
Apple manages to dodge a bullet with the new exemptions
Also reported by Bloomberg, Apple is—very understandably—relieved to hear the new ruling. The company is getting ready to start production for the iPhone 17, and if the 125% tariff went through, the company would have had a nightmare trying to get it to market on time and at a reasonable price. Before the exception was made, Apple was planning to move as much production as possible over to India, where 30 million iPhones are produced every year. However, keeping everything on schedule and competitively priced would have thrown a spanner in Apple’s works.
These new exceptions may also allow the gaming world to relax a little. After Nintendo had to delay the Switch 2 due to the tariffs, these new rules may allow the company to get back on track once more at the originally announced price.
