In yet another surprising twist amid the burgeoning trade hostilities between the United States and China, the Trump administration this week exempted smartphones and computer monitors from the incredible 145 percent tariff on imports from China. The announcement, from U.S. Customs and Border Protection on Friday evening, April 11, 2025, affords CBP a rare moment of restraint in one of the most aggressive trade confrontations seen in recent history.
The new tariffs will not be applied to smartphones and monitors that entered the U.S. or had been disposed of from their warehouses of origin from April 5 onward. From this perspective, it could then be interpreted that this exemption aims to ease the burden of American consumers and the tech giants from a sudden cost increase that a tariff regime could have otherwise caused.
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A sign of relief for the tech industry
Major U.S. tech companies such as Apple, Dell, and HP, which rely heavily on Chinese manufacturing and assembly activities, received some respite from the decision to exclude smartphones and monitors. Ever since President Trump announced those sweeping tariff hikes-which were referred to as “reciprocal tariffs” in retaliation against what his administration deems as unfair Chinese trade, the industry has expected that it was going to be hit hard.
Besides smartphones and monitors, semiconductors were also exempted from the earlier 10% “base tariff” that is being imposed on imports from most of its trading partners. These high-tech components are of great importance to countless devices and industries, and their exemption shows the administration’s understanding of just how deeply entwined the global supply chain is with China.
Justifying his actions: Fentanyl and national security
President Trump has called for a 145 percent tariff on China to prevent it from allegedly flooding the U.S. with fentanyl. Trump maintains that fentanyl has led to perhaps hundreds of thousands of deaths across the U.S. in the past twenty years. Recent trade tariffs have come under the umbrella of national security and public health in their justification, where he argues that it is proper in the modern geopolitical environment to apply economic pressure to address these larger concerns.
“The days of China profiting while Americans suffer are over,” Trump said in a statement earlier this week. “We will not sit back while they undermine our economy and poison our people.”
That is a retaliatory tariff imposition by China.
In retaliation for the belligerent trade of Washington, the Beijing government declared on Friday that all imported goods that are coming from the U.S. will now be subject to increased tariffs going into China, from 84 percent to 125 percent. This measure, effective Saturday, was confirmed by the Customs Tariff Committee of the State Council, which accused the U.S. of violating international trade rules and fruitlessly heightening tensions.
But experts warn that the way both parties are staring down the barrel currently might lead to harassment of economies even more, inflating prices for consumers and jitteriness in world markets. But, again, the exemption of key electronics suggests even in the heat of conflict, this would mean neither can be pressed to surrender its ground just yet.
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