Smartphones and computers exempt from latest U.S. tariffs

According to a U.S. Customs and Border Protection notice, smartphones and computers will be exempt from the Trump administration’s latest round of reciprocal tariffs.

The decision was posted late Friday evening, mere days after Trump imposed a 145 per cent tariff rate on Chinese goods imported to the U.S.

Shortly after the announcement was made, tech companies warned that the steep levies would have a massive impact on their businesses.

Tech giants like Apple and Samsung produce most of their products in China – meaning the price of a cell phone or laptop would skyrocket once it passes through U.S. Customs.

Despite the eventual exemption, the threat of tariffs battered the ‘Magnificent Seven’ – Apple, Microsoft, Amazon, Alphabet, Nvidia, Tesla and Meta’ – in the stock market.

Within days, the seven companies’ combined market value dropped by $2.1 trillion.

The exemption seemed to reflect Trump’s realization that tariffs on China are unlikely to persuade manufacturers to move to the U.S., at least for the time being.

READ MORE: China excluded from Trump’s 90-day pause, tariffs increased to 125%