Apple CEO Tim Cook [left] with Donald Trump [right] at a Mac Pro factory
In a surprise announcement extremely late on Friday night, President Trump has exempted smart phones, computers, and chips from the so-called reciprocal tariffs, sparing Apple and others billions in import fees.
The exclusions published near midnight eastern time grant exemptions to products that would take years to develop in the US. Apple is greatly helped by the exemptions, with much of Apple’s product line now exempt from the 145% tariff applied.
Almost the entirety of Apple’s product line is now exempt from the enhanced tariffs. Computers, smartphones, flat panel TVs and monitors, flash memory, DRAM, and other storage like hard drives are exempt for the time being.
And, the exemptions go beyond completed hardware. Imports of silicon chips are now exempt, and also exempt are the fabrication machinery needed to make semiconductors.
The order applies to the initial 10% and the follow-up orders after China applied their own tariffs, but it has an odd specificity. The exclusion order is downstream of the initial order, leaving open the possibility of a new tariff on these products.
So far, on Saturday morning, the White House is quiet. There does not appear to have been any negotiations with the Chinese government overnight.
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