- Saturday, April 12, 2025
The exemptions suggest an increasing awareness within the Trump administration of the pain that his tariffs had in store for consumers
By: India Weekly
THE TRUMP administration has granted tariff exclusions for smartphones, computers and other electronics imports supplied largely by China, sparing them from much of president Donald Trump’s steep 125 per cent duties.
In a notice to shippers, the US Customs and Border Protection (CBP) agency published a list of tariff codes that will be excluded from the duties. The exclusions are retroactive to 12:01 am on April 5.
White House officials did not immediately reply to a request for comment on why the latest tariff exemptions had been made, but analysts see it as an apparent step back in an escalating trade war with China.
The US CBP listed 20 product categories, including the very broad 8471 code for all computers, laptops, disc drives and automatic data processing. It also included semiconductor devices, equipment, memory chips and flat panel displays.
The notice did not provide an explanation for the Trump administration’s move, but the late-night exclusion provides welcome relief to major US technology firms, including Apple Dell Technologies and countless other importers.
But the exemptions suggest an increasing awareness within the Trump administration of the pain that his tariffs had in store for consumers, especially on popular products such as smartphones, laptops and other electronics.
Trump ran for re-election last year largely on a promise to bring down prices that, fueled by inflation from the pandemic and Russia’s war in Ukraine, had rocketed and tarnished the economic reputation of President Joe Biden and his Democratic allies.
But Trump also promised as a candidate to impose the tariffs that have become a central part of his economic agenda, and the president has dismissed the turbulence in financial markets and expected price increases arising from the levies as a disturbance that was a necessary part of realigning the global economy and world trading order with his vision.
His so-called “reciprocal tariffs”, however, raised fears of a U.S. recession and drew criticism from his fellow Republicans, who do not want to lose control of the U.S. House of Representatives and Senate in next year’s midterm elections to Democrats, who have sharply attacked Trump’s policies.
Trump, who is spending the weekend at his residence in Florida, told reporters on Friday (11) that he was comfortable with the high tariffs on China but respected President Xi Jinping and believed something good would come out of the trade conflict between them.
Washington and Beijing’s escalating tariff battle has raised fears of an enduring trade war between the world’s two largest economies and sent global markets into a tailspin.
The fallout has sent particular shockwaves through the US economy, with investors dumping government bonds and the dollar tumbling. (Agencies)
