In the latest update from U.S. Customs and Border Protection, smartphones and personal computers have been excluded from the broad tariffs introduced last Wednesday by President Donald Trump. This development offers relief to major tech companies, especially Apple, which manufactures most of its devices overseas.
Tech Industry Avoids Heavy Tariffs in Ongoing U.S.-China Trade War
Late last week, speculation suggested that mobile devices could be spared from the new tariffs. These rumors proved accurate as new federal guidance confirmed exemptions for key tech products. The U.S. recently imposed tariffs as high as 145% on Chinese imports, prompting China to respond with a 125% tariff on U.S. goods.
Two Harmonized Tariff Schedule codes—8517.13.00 (smartphones) and 8471 (computers)—were specifically mentioned in the new guidance, signaling they are not subject to the latest trade penalties.
Apple Among the Biggest Beneficiaries
Apple, which produces about 90% of its iPhones in China, is among the companies to gain the most from the exemptions. Other excluded items include computer processors, hard drives, and memory chips—components largely manufactured overseas and difficult to produce domestically in the short term.
According to CFRA Research analyst Angelo Zino, the cost burden on Apple could have been massive if tariffs were fully applied.
“Apple would face up to $50 billion in additional production costs,” Zino wrote in a note to investors. “We expect the company to delay any price increases until its fall product launch. If trade negotiations stall, the likelihood of a permanent Apple-specific exemption could rise to 50%.”
Apple Moves Inventory Ahead of Tariff Threat
Reports this week revealed that Apple shipped roughly 600 tons of iPhones—equivalent to 1.5 million units—from India to the U.S. in a proactive move to boost inventory ahead of any further trade complications.
Tim Cook Maintains Strong Ties with Trump Administration
Apple CEO Tim Cook has played a strategic role in maintaining a close relationship with the Trump administration. Cook was one of the first tech leaders to meet with Trump after the 2016 election, contributed $1 million to Trump’s inauguration, and attended policy dinners at Mar-a-Lago.
Cook’s engagement with the White House has helped Apple navigate several legal and regulatory challenges, particularly in international markets.
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