On Saturday, while en route to Miami, Trump promised to provide more details about the exemption measures early next week, stating, "We'll be very specific. But we're taking in a lot of money. As a country, we're taking in a lot of money." The new exemptions, which are retroactive to April 5th, also encompass other pivotal electronic components such as semiconductors and solar cells. This move has been viewed as a relief for major tech companies like Apple, Nvidia, and Microsoft, whose stocks are likely to benefit from the updated policies.
According to Dan Ives of Wedbush Securities, by excluding smartphones and chips from tariffs, the situation has turned favorable for tech investors. Furthermore, White House Press Secretary Karoline Leavitt underscored that these exemptions are designed to give companies an opportunity to relocate production to the United States. Despite this, some tariffs — particularly a 20% levy linked to fentanyl imports from China — still remain in place for certain electronic products.
Concerns had been mounting among corporations about potential price hikes on consumer electronics if tariffs were embedded in retail costs; reports suggested that the price of an iPhone in the US could rise significantly. This scenario was particularly troubling for Apple, which derives over 50% of its smartphone sales from the American market and produces around 80% of its devices earmarked for US consumers in China.
Amid these developments, Apple has been actively exploring manufacturing alternatives in countries like India and Vietnam as part of its strategy to mitigate reliance on China. With the new tariff policies being implemented, Apple is anticipated to accelerate its production of devices from India.
The latest adjustment to the tariff policies follows Trump's earlier announcement of a 90-day pause for tariffs across several countries, except for China, whose tariffs were escalated to 145%. This pause was interpreted as a strategy to negotiate better trade terms while addressing perceived inequities within the global trading framework.
According to Dan Ives of Wedbush Securities, by excluding smartphones and chips from tariffs, the situation has turned favorable for tech investors. Furthermore, White House Press Secretary Karoline Leavitt underscored that these exemptions are designed to give companies an opportunity to relocate production to the United States. Despite this, some tariffs — particularly a 20% levy linked to fentanyl imports from China — still remain in place for certain electronic products.
Concerns had been mounting among corporations about potential price hikes on consumer electronics if tariffs were embedded in retail costs; reports suggested that the price of an iPhone in the US could rise significantly. This scenario was particularly troubling for Apple, which derives over 50% of its smartphone sales from the American market and produces around 80% of its devices earmarked for US consumers in China.
Amid these developments, Apple has been actively exploring manufacturing alternatives in countries like India and Vietnam as part of its strategy to mitigate reliance on China. With the new tariff policies being implemented, Apple is anticipated to accelerate its production of devices from India.
The latest adjustment to the tariff policies follows Trump's earlier announcement of a 90-day pause for tariffs across several countries, except for China, whose tariffs were escalated to 145%. This pause was interpreted as a strategy to negotiate better trade terms while addressing perceived inequities within the global trading framework.
