There is a major pivot in the US trade policy where the Trump administration has slapped tariffs as high as 125% on Chinese goods. It happened in a high-stakes move aimed at reshaping the global supply chain. China isn’t taking it lightly, and they’ve responded by jacking up their own tariffs to 125 percent in a full-on escalation. In a turn of events, the US government has made some exceptions.
Some tech products have dodged Trump’s tariff tantrums
Trump’s hopes during the current trade war is for Americans to buy more home-made goods, raise more tax revenue, and attract huge investment. At the heart of it, a tariff is simply a tax on imported goods. So when a product comes into the country from another, a tariff makes it more expensive and forces you to look inward.
If a Chinese-made smartphone used to cost $1,000, a 25% tariff could raise that to $1,250. That price hike doesn’t magically disappear. It either gets paid by the company importing it or passed directly to the consumer. Usually, it’s both.
Fortunately, Smartphones, computers, and a bunch of other electronics have gotten a pass from the taxes. Apple, Nvidia, and a few other major players can breathe for now. Your next Galaxy S25 Ultra or Pixel 9 Pro XL can still be imported without any ridiculous price hikes. Still, this is only a 90-day pause. If tensions keep rising, that exemption could disappear just as quickly.
The exemption itself is massive as the US is letting $390 billion worth of imported goods skip the tariffs, based on last year’s trade data. Out of that, over $101 billion comes directly from China. Signs point to the country protecting major electronics and semiconductors, which tells you where the government’s priorities lie. Technology needs to stay safe at all costs, while pressure on China continues elsewhere.
Related: Google’s Plan for Cheaper Foldables Dead Thanks to Trump Tariffs
Tariffs hit hundred year high point
In a memorandum released by the White House, Trump goes further by listing specific tariff classifications to remove any doubt about which semiconductor-related products are exempt. It covers everything from basic chips to machines used to make them, many of which are essential for artificial intelligence, data centers, and smartphone manufacturing.
In Executive Order 14257, I stated that certain goods are not subject to the ad valorem rates of duty under that order. One of those excepted products is “semiconductors.” The subsequent orders issued in connection with Executive Order 14257 — i.e., Executive Order 14259 of April 8, 2025 (Amendment to Reciprocal Tariffs and Updated Duties as Applied to Low-Value Imports from the People’s Republic of China), and the Executive Order of April 9, 2025 (Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment), (Subsequent Orders) — incorporate the exceptions in Executive Order 14257, including for “semiconductor
President Donald J. Trump, The White House.
If any duties were already collected on these semiconductor imports after April 5, they must be refunded, and the tariff code will be updated to reflect the exemption. For decades, the US has had relatively low tariffs, especially as a global trade leader. A 2% average tariff is pretty normal in a modern, open economy. Jumping to 24% is charging one of the highest import taxes it’s ever had in more than 100 years.
