Huge Trump tariff U-turn will exempt iPhone and laptops
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President Donald Trump has spared iPhone, laptops and other electronics from his brutal China tariffs in surprise move.

The moves gives the likes of Apple and Samsung a major win while Americans dodge massive price hikes.

Under the unexpected tariff exclusions, quietly revealed late Friday by US Customs and Border Protection, the gadgets will avoid Trump’s 125 percent import tax on Chinese goods – and even his sweeping 10 percent global tariff.

The list of spared items includes smartphones, laptop computers, hard drives, memory chips and processors – all tech essentials that are rarely made in the United States. 

Experts say it would take years to ramp up domestic production, if it happens at all. More than 80 percent of all Apple products are made in China — including a staggering 80 percent of iPads and over half of all Mac computers, according to data from Evercore ISI.

In the days following Trump’s tariff announcement, Apple saw $640 billion wiped from its market value.

But it is not clear if the tariff timeout is permanent. The White House’s move appears to stem from technical rules that stop overlapping tariffs – meaning the products could still face new, smaller levies in the near future.

The tariff reprieve — first reported by Bloomberg on Saturday morning — may be temporary, as the exclusions may soon be replaced by a different, likely lower, tariff for China. 

China is preparing for a 'prolonged economic warfare' with Donald Trump (pictured) after the president added additional tariffs on Beijing, while announcing a pause for other trading partners

China is preparing for a ‘prolonged economic warfare’ with Donald Trump (pictured) after the president added additional tariffs on Beijing, while announcing a pause for other trading partners

The Communist nation – under President Xi Jinping (pictured) has spent years fostering a strategy that transitioned from building housing to $1.9trillion constructing factories to make cheap goods for export, seeing them rise 13 percent and 17 percent in 2023 and 2024

Semiconductors, in particular, remain a big question mark. Trump has vowed to slap a sector-specific tariff on them but has so far held back. 

His administration’s latest carve-outs seem to align with that delay – for now.

Trump’s current industry-focused tariffs sit at 25 percent, but sources say it’s unclear what rate semiconductors and chipmaking tools could ultimately face.

China and the U.S. remain locked in an extended trade war, with Beijing responding to the latest tariff hikes by threatening to unleash a $1.9 trillion wave of exports, part of what officials described as ‘long-term economic warfare.’

While the tariff exemptions provide temporary relief, the broader implications for Apple and the tech industry are profound. 

Analysts warn that relocating iPhone production to the U.S. would be a monumental task, both logistically and financially. 

Bank of America Securities analyst Wamsi Mohan estimates that producing the iPhone 16 Pro Max domestically could increase its price by 91 percent, pushing it from $1,199 to approximately $2,300.

Apple iPhone 16 models are displayed at a store in London amid fears the price could soar

Apple iPhone 16 models are displayed at a store in London amid fears the price could soar

President Donald Trump explains his 'Liberation Day' crackdown at the White House last week

President Donald Trump explains his ‘Liberation Day’ crackdown at the White House last week 

Wedbush Securities analyst Dan Ives suggests the cost could soar even higher, potentially reaching $3,500 per unit. 

The challenges stem from higher labor costs in the U.S. — around $200 per unit compared to $40 in China—and the lack of a skilled workforce for specialized manufacturing tasks. 

Apple CEO Tim Cook has previously highlighted the scarcity of qualified tooling engineers in the U.S., noting that while China boasts a vast pool of such talent, the U.S. has a significant shortfall. 

In response to the escalating tariffs, Apple has taken swift action to mitigate potential disruptions. 

The company chartered flights to expedite the shipment of approximately 1.5 million iPhones from India to the U.S., aiming to preempt the impact of the tariffs. 

This move underscores Apple’s reliance on its global supply chain and the challenges of rapidly adjusting production logistics. ​

Furthermore, Apple is exploring the possibility of shifting some production to other countries, such as India and Vietnam. 

However, these regions also face their own set of tariffs — 26 percent for India and 46 percent for Vietnam — complicating the company’s efforts to find cost-effective manufacturing alternatives.

Apple boss Tim Cook ensured his company got an exemption for billions of dollars in imports of Chinese-made smartwatches and other components during President Donald Trump's first term in the White House

Apple boss Tim Cook ensured his company got an exemption for billions of dollars in imports of Chinese-made smartwatches and other components during President Donald Trump’s first term in the White House

The tariff situation has broader implications beyond Apple. 

The increased costs associated with tariffs could lead to higher prices for a range of consumer electronics, potentially ending the era of affordable gadgets that Americans have enjoyed for decades.

While the Trump administration argues that the tariffs are necessary to protect national security and promote domestic manufacturing, critics warn that the approach could backfire, leading to increased costs for consumers and potential disruptions in the global supply chain. ​

As the situation continues to evolve, companies like Apple must navigate a complex landscape of trade policies, supply chain logistics, and consumer expectations. 

The decisions made in the coming months will have lasting impacts on the tech industry and the global economy.

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