US Tariff Exemptions Offer Relief to Tech Giants

Trump eases tariff restrictions on vital tech products,
supporting companies like Apple and Nvidia while reducing pressure on consumers.

Content

Exemption
Artificial Intelligence

Exemption

Covers Apple and Nvidia

The administration of U.S. President Donald Trump announced a temporary exemption from tariffs on smartphones, computers, processors, and memory chips. This move greatly benefits major companies like Apple and Nvidia,
as these products were previously subject to tariffs of up to 125% on China and 10% on most other countries.

These exemptions come as a relief for consumers fearing price hikes,
and also represent a government response to pressure from tech giants that pledged to increase their investments within the United States.

Reducing Dependence on China

White House spokesperson Karoline Leavitt stated that the U.S. can no longer rely on China for manufacturing critical technologies such as semiconductors, smartphones, and laptops.
She added that the Trump administration has successfully attracted billions of dollars in investments from leading companies to localize these industries within the U.S.

This step marks one of the first major concessions in Trump’s trade policy and was retroactively applied starting April 5.

Artificial Intelligence

Support

The exemptions also include AI-related servers and their components, such as GPUs, which are mostly manufactured in Taiwan and Mexico.
This is expected to strengthen the U.S. AI infrastructure, especially amid ongoing investments from companies like Nvidia.

Semiconductor Equipment Included

Semiconductor manufacturing equipment also benefited from the exemptions,
including machinery made by Dutch company ASML and Japan’s Tokyo Electron.
These tools are essential for building new chip plants, supported by the U.S. Chips and Science Act.

Apple Products Exempt from Tariffs

The move exempts Apple’s core products from tariffs, including iPhones, iPads, Apple Watches, and AirTags, while AirPods remain subject to tariffs.
Apple’s stock had come under selling pressure following Trump’s tariff announcements,
especially in comparison to competitors like Samsung, which are less dependent on China.

Expectations of New Tariffs

Despite the current relief, the U.S. administration plans to impose new sector-specific tariffs, particularly targeting semiconductor imports.
These upcoming tariffs are expected to mirror those recently applied to steel and aluminum.

Former U.S. trade negotiator Wendy Cutler noted that these exemptions were issued faster than expected
but could complicate ongoing trade negotiations with other countries seeking similar treatment.

US Tariff Exemptions Offer Relief to Tech Giants

US Tariff Exemptions Offer Relief to Tech Giants

Related Topics