This is an olive branch. Will Xi Jinping convene Donald Trump because the United States is tax-free with smartphones, computers and chips?
The U.S. Customs and Border Protection (CBP) lists 20 product categories, including all computers, laptops, optical drives and a very broad 8471 code for automatic data processing. It also includes semiconductor devices, devices, memory chips and flat panel displays. The notice did not explain the Trump administration’s actions, but late-night exclusion provided welcome relief to major U.S. technology companies, including Apple, Dell Technologies and many other importers.
Trump’s action also ruled out a 10% “baseline” tariff on designated electronic products from most countries outside China, reducing import costs for semiconductors from Taiwan and iPhones made in India.
Favor for China?
For Chinese imports, the exclusion of reciprocity tariffs that only apply to Trump, which rose to 125% this week, according to White House officials. Immunity is not a complete probation. Other tariffs still apply to electronics and smartphones. The Trump administration imposed 20% tariffs on Chinese goods earlier this year because the administration is talking about the country’s role in the fentanyl trade.
But the exemption shows that Trump administration is increasingly aware of the pain caused by his pain, especially on popular products such as smartphones, laptops and other electronics. Economists and analysts say U.S.-China trade could be a big stop. Smartphones are the highest imports from China by the United States in 2024, totaling $41.7 billion, while China-built laptops are second, second, 33.1 billion.
Is it a permanent solution?
The exemption may be short-lived. People familiar with the matter say the Trump administration is conducting another national security-related trade investigation into semiconductors, which may also apply to some downstream products, including electronics. The New York Times News reported that these investigations have previously led to other tariffs.
Previously, President Trump returned from many tariffs introduced on April 2, which he called “Liberation Day.” His so-called reciprocity tariffs put forward taxes, which would reach 40% of products imported from certain countries. Trump turned around after the stock and bond markets plunged and said he would suspend it for 90 days.
China is an exception to Trump’s relief as Beijing chooses to retaliate against U.S. tariffs with its own taxes. Instead of suspending tariffs on Chinese imports, Trump increased it to 145% and was reluctant to exempt any company from fees. In return, China said on Friday that it raised its tariffs on U.S. goods to 125%.
FAQ
Q1. Who is the President of the United States?
A1. The president of the United States is Donald Trump.
Q2. Who is the supreme leader of China?
A2. China’s supreme leader is Xi Jinping.
