Are Smartphones Exempt From Trump’s ‘Reciprocal’ Tariffs?

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n a recent twist in the ongoing saga following President Donald Trump’s announcement on April 2 regarding “reciprocal” tariffs, the Trump Administration has revealed that certain electronics will be exempt from these tariffs.

A notice issued by U.S. Customs and Border Protection (CBP) late Friday indicated that specific electronic devices—including smartphones, laptops, hard drives, flat-panel displays, and machinery used for semiconductor production—will be exempted. The notice clarified that this exemption applies to products entering the U.S. or being removed from warehouses as of April 5.

This exemption allows these products to avoid the steep “reciprocal” tariffs imposed on China, where Apple has manufactured the majority of its iPhones since the initial model was launched 18 years ago. However, as noted by Stephen Miller, Trump’s Deputy Chief of Staff for Policy, in a post on X on Saturday, these electronics remain “subject to the tariff under the original IEEPA on China of 20 percent.”

The introduction of these tariffs could have significantly affected electronics purchases, which in turn would impact major tech companies such as Apple, Microsoft, Nvidia, and Samsung, given that many of their supply chains are located in China and other non-U.S. countries. Experts had estimated that prior to the exemption, the tariffs could have increased the cost of an iPhone by thousands for American consumers, particularly if it were manufactured domestically.

Trump has previously urged tech companies to relocate their operations and manufacturing to the United States, referencing Apple’s announcement in February about its plan to invest $500 billion in the U.S. over the next four years.

In a post on Truth Social on April 9, Trump stated: “This is a GREAT time to move your COMPANY into the United States of America, like Apple, and so many others, in record numbers, are doing. ZERO TARIFFS, and almost immediate Electrical/Energy hookups and approvals. No Environmental Delays. DON’T WAIT, DO IT NOW!”

However, as the Washington Post points out, Apple’s operations are quite complex and extend beyond U.S. borders. While their iPhones are designed in California, they are assembled in China and India, with components sourced from numerous suppliers worldwide.

The announcement regarding exemptions came after Trump hinted at the possibility while speaking to reporters aboard Air Force One on Friday. “There could be a couple of exceptions for obvious reasons, but I would say 10% is a floor,” Trump noted, without elaborating on what those reasons might be.

Concerns have been raised by experts regarding the potential impact of Trump’s tariffs on consumers, with expectations of rising prices. Notably, according to U.S. Census Bureau data, China was the second-largest supplier of goods to the U.S. in 2024 (with Mexico being the top source). China is particularly recognized for its supply of broadcasting equipment and computers to the U.S.