Please note Trump Exempts Smartphones, Other Electronics From Chinese Tariffs

Smartphones, laptop computers, memory chips and other electronics will be exempt from President Trump’s so-called reciprocal tariffs, another step back that could ease some consumer concerns about an immediate jump in costs for tech products imported from China.

New guidance published late Friday by U.S. Customs and Border Protection also exempts machines used to create semiconductors, plus products including computer monitors, tablets, Apple watches and computers from the tariffs Trump imposed in his April 2 executive order, which mandated levies of 10% of the value of almost all U.S. imports, and set higher rates on imports from some countries. Trump later boosted the level of these reciprocal tariffs on China to 125%, and issued a 90-day pause on tariffs above 10% for other countries.

In all, 20 categories of products are affected. The biggest impact is on imports from China, because of the heights to which tariff rates had risen in recent days. In addition to the reciprocal tariffs, the Trump administration has imposed tariffs of 20% on Chinese imports over that nation’s role in the fentanyl trade, which the White House said aren’t subject to the exemptions.

Some analysts say the exemptions highlight the chaotic nature of Trump’s trade policy, adding that it is unrealistic to onshore manufacturing in many industries due to high labor costs and other factors. There are no substitutes for these products in the U.S. and price increases would be unpopular as consumers have been battered by high inflation in recent years.

Apple CEO Tim Cook personally donated $1 million to Trump’s inauguration after the election, as did other tech companies and leaders including Meta along with Amazon.com founder Jeff Bezos. Other American corporations also made donations. Cook won several tariff exemptions for Apple in the first Trump administration.

China Ignores Trump’s Request to Call

CNN reports Trump Is Waiting for Xi to Call. The Chinese See it Differently

As the rest of the world received a 90-day respite, Trump escalated tariffs on China, saying the US will now charge an extra 145% on all Chinese goods that arrive in the US. In response, Beijing ratcheted up its own tariffs on American goods Friday to 125%, and the country’s leader — who Trump is urgently working to engage — warned China was “not afraid” of a prolonged trade conflict.

In private discussions hours before China announced new retaliatory tariffs, the Trump administration warned Chinese officials against such a move, according to a source familiar with the discussions.

The Chinese were also told – once again – that Chinese President Xi Jinping should request a call with US President Donald Trump.

Instead, US officials woke up to news of increased Chinese tariffs and no request for a leader level call. Xi also made comments that only dug him in further.

“For over 70 years, China’s development has relied on self-reliance and hard work — never on handouts from others, and it is not afraid of any unjust suppression,” Xi said according to state broadcaster CCTV during his meeting with the Spanish prime minister.

Two senior White House officials tell CNN that the US will not reach out to China first. Trump has told his team that China must be the first to make the move, as the White House believes it is Beijing that has chosen to retaliate and further escalate the trade war.

That stance has been conveyed to Beijing for roughly two months, with Trump’s team clearly telling Chinese officials that Xi should request a call with Trump. But Beijing has repeatedly refused to arrange a leader-level phone call, according to three sources familiar with the official communications.

“The door to talks is open, but dialogue must be conducted on the basis of mutual respect and equality,” a spokesperson for the Chinese Commerce Ministry said Thursday. “If the US chooses confrontation, China will respond in kind. Pressure, threats, and blackmail are not the right ways to deal with China.”

“The Chinese in any case, are reluctant to put their leader in the position that Zelensky found himself in,” said Danny Russel, a former assistant secretary of State for East Asia and currently vice president of the Asian Society Policy Institute. “They want to ensure that some of the groundwork is laid for a meeting, and that there’s some ground rules established.”

Translation – Go to Hell

Despite China doing nothing but mock Trump, lookie here, Trump backs down.

How are you going to spin this, spin doctors?

This is the second back down by Trump. First he trashed his idiotic reciprocal tariffs except on China.

Then he upped tariffs on China. After China fired back, Trump decided that electronics from China are now exempt.

The EU, Canada, and Mexico should learn from this.

Related Posts

On April 9, I noted Trump Capitulates with a 90-Day Pause on Tariffs, DOW Jumps 2,200 Points

Trump has had enough of the stock market decline.

On April 10, I noted Trump Tariff Pause Ignites Another Mad Dash for Imports

Companies cancelled import orders from high-tariffed countries. Now they want those orders.

On April 11, I noted Tariff-Related Auto Price Increases Have Arrived, Will Get Much Worse

New Car Prices Are Ticking Up. Sales “Hangover” is Likely as Trade Wars Heat Up.

Also see Sticker Shock: How Much Will an iPhone Cost with Trump’s Tariffs?

If consumers would pay $3,500 for an iPhone, we could bring production to the US.

My question today is “When does Trump back down from auto tariffs?”

The more important question is “Given that no company can plan for anything, just how stupid is this?”

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