In a significant policy shift, the U.S. government has announced exemptions from recent tariff increases for a range of technology products, including smartphones, computers, and semiconductor equipment. This move comes amid escalating trade tensions with China, where tariffs on Chinese imports had reached as high as 145%.​

Under the new exemptions, tariffs on certain electronics have been substantially reduced. For instance, the average tax rate on these electronics has been slashed from 45% to 5%, and for Chinese imports, the effective tariff has been reduced from 145% to 20% for the exempted items. This policy change affects approximately $100 billion in Chinese imports and $385 billion overall.

Major tech companies such as Apple, Nvidia, Dell, and HP stand to benefit from these exemptions, as many of their products are assembled in China. Additionally, semiconductor manufacturing equipment, crucial for companies like ASML, Intel, and TSMC, will see tariffs drop from 19% to 1%. ​

Despite these exemptions, the administration maintains a firm stance on encouraging domestic manufacturing, with significant investments aimed at bringing tech production to the U.S. Furthermore, a Section 232 investigation into the national security implications of semiconductor imports is underway, which could lead to new tariffs on tech products in the future.

While the exemptions provide relief to the tech sector, other industries, such as apparel and footwear, continue to face full tariffs, highlighting the selective application of these exemptions.