Technology Exemptions: Smartphones and Computers Now Tariff-Free Under Trump's Latest Policy

Electronics imported to the United States are now exempt from President Donald Trump's reciprocal tariffs, according to a US Customs and Border Protection notice posted late Friday. Smartphones, computer monitors, and various electronic parts are among the exempted products.

The exemption applies to products entering the United States or removed from warehouses as early as April 5. The move comes after the Trump administration imposed a minimum tariff rate of 145% on Chinese goods imported to the United States.

"There could be a couple of exceptions for obvious reasons, but I would say 10% is a floor." — President Donald Trump

Roughly 90% of Apple's iPhone production and assembly is based in China, according to Wedbush Securities' estimates. Counterpoint Research estimated Apple has up to six weeks of inventory in the United States. Once that supply runs out, prices would have been expected to go up.

Economists have warned that the cost of tariffs may ultimately be passed on to the consumer, which could lead to a drop in consumer sentiment. As it stands, consumer sentiment has dropped to record lows.

The Trump administration says these tariffs would bring more manufacturing jobs to the United States and reverse a decades-long decline. However, some products can't be easily made or found in the United States, increasing the costs to produce them in American factories.

"Semiconductors and microchips are among the products heavily outsourced to factories in Asia due to lower costs." — US Customs and Border Protection notice

The exemption on semiconductors and microchips could help Asian chipmakers, such as Taiwan Semiconductor Manufacturing Company (TSMC), South Korea's Samsung and SK Hynix.

This is a developing story and will be updated.