President Donald Trump has rolled back some of his most aggressive trade measures by granting tariff exemptions for a range of consumer electronics, offering critical relief to companies such as Apple, Dell, and Nvidia.
In guidance issued late Friday, the US Customs and Border Protection agency confirmed that smartphones, laptops, computer chips, and other electronics would be excluded from the administration’s latest round of reciprocal tariffs targeting China.
The exemptions apply retroactively from April 5 and cover approximately 20 product categories.
The move marks a significant shift in Trump’s tariff strategy, which had escalated trade tensions and alarmed the tech sector.
Companies warned that the original plan – to impose tariffs as high as 125 percent on imports from China – could force sharp price increases for consumers and disrupt global supply chains.
Analysts estimated that a high-end iPhone, currently priced at $1,599, could have cost more than $2,300 under the new tariff regime.
Apple, which relies heavily on manufacturing operations in China, had reportedly begun preparations to shift some iPhone production to India in anticipation of the tariffs.
With the exemptions in place, that move may no longer be necessary in the near term.
In a statement, Apple declined to comment directly but said it “welcomes policies that support continued innovation and investment in the US and abroad”.
Despite the tariff relief, the Trump administration reiterated its position that American companies should reduce their reliance on China.
White House Press Secretary Karoline Leavitt said in a briefing that the administration remains committed to “onshoring critical manufacturing” and would continue to encourage companies to move production to the United States.
The administration is also preparing to launch a national security investigation into semiconductor imports, which could lead to further trade actions in the coming months.
Shares of Apple, Nvidia, Dell, and other tech companies rose sharply following the announcement, reversing losses from earlier in the week.
Industry leaders welcomed the exemptions but expressed caution.
“This is an important development, but we still face considerable uncertainty around future policy,” one senior executive at a US semiconductor firm said.
“The broader questions about long-term supply chain security and geopolitical risk are far from resolved.”
The tariff guidance comes as President Trump continues to refine his trade policies during a politically sensitive period, balancing his tough-on-China stance with the concerns of corporate leaders and consumers facing higher costs.
