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The Trump administration has decided to exclude smartphones from its significant “reciprocal” tariffs as it seeks to stabilize global markets by moderating its stance in the ongoing trade war initiated by the president.
A notice released late Friday by Customs and Border Patrol, the agency responsible for tariff collection, confirmed that smartphones, along with routers and certain computers and laptops, would not be subject to the reciprocal tariffs, which involve the 125 percent duties imposed on Chinese imports by Donald Trump.
This exemption comes after a turbulent week in US markets triggered by Trump’s announcement of a trade war on “liberation day” on April 2, creating uncertainty among global investors and leading to a significant decline in the stock market as well as a downturn in the $29 trillion US Treasury market.
The exemption marks the first indication of any easing in Trump’s tariff strategies towards China, which he had escalated over the previous week, albeit maintaining the most severe “reciprocal” tariffs. Tariffs of 10 percent remain intact for most trading partners.
Prior to this, the Trump administration had already granted exemptions to various sectors from the reciprocal tariffs, including semiconductors and pharmaceuticals; however, the president has indicated intentions to enforce tariffs in those areas as well.
Inquiries regarding the order were referred by US Customs and Border Protection to the US International Trade Commission, which has not yet provided a response to the request for clarification.
It remains uncertain whether smartphones imported from China will still incur a 20 percent duty that was not part of the reciprocal tariffs introduced by Trump on April 2.
The White House has not yet responded to requests for additional information.
