Apple avoids a $3,500 iPhone scenario as U.S. Customs exempts critical tech devices from reciprocal tariffs.
Smartphones, computers, semiconductors, and key electronic components are officially exempted from Trump’s 145% China tariffs, per new U.S. Customs guidance. The decision eases Wall Street’s worst fears and offers a massive reprieve for Apple, which saw over $640B in market cap erased following the original tariff announcement. The exemptions are retroactive to April 5, offering immediate clarity for shippers and tech manufacturers caught in limbo.
A Lifeline for Big Tech
After days of panic following President Trump’s steep tariff hikes on Chinese imports, U.S. Customs and Border Protection released a list of exclusions Friday night, shielding:
- Smartphones & tablets
- Laptops & desktops
- Semiconductors
- Flash drives, SSDs, memory cards
- Solar cells and flat-panel displays
These items may face modest duties later, but not the punishing 145% rate that had threatened to obliterate hardware profit margins.
“This is the dream scenario for tech investors,” said Dan Ives of Wedbush Securities.
“Smartphones and chips being excluded is a game changer. It saves Big Tech from a tariff Armageddon.”
Apple’s Close Call
Apple, which manufactures 80% of iPads and over half of Mac computers in China, was among the hardest hit.
Analysts had projected iPhone prices could surge to $3,500 under the original tariff structure. The announcement wiped $640 billion off Apple’s market cap before this reversal.
“Big Tech CEOs spoke loudly,” Ives said. “And the White House listened.”
Markets React, Treasury Yields Spike
Tariff chaos rocked financial markets this week:
- S&P 500 fell 5% before Friday’s rebound
- 10-year Treasury yield soared over 50 basis points, one of the steepest jumps on record
- The uncertainty triggered a bond selloff and revived fears of stagflation
In response, Trump paused reciprocal tariffs on most nations, replacing them with a universal 10% tariff—except for China, which still faces 145% duties.
Exemption Terms & Retroactivity
The new Customs guidance clarified:
- Exemptions apply retroactively for goods that left warehouses by April 5, 2025
- This protects importers from retroactive shocks and offers financial planning certainty
Trump’s trade war isn’t over, but for now, Big Tech just dodged the biggest bullet. With smartphones, chips, and laptops spared, the damage to consumer prices and global supply chains may be far smaller than feared—at least until the next policy twist.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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