Daijiworld Media Network - Washington

Washington, Apr 13: In a significant shift in policy, President Donald Trump's administration has exempted smartphones, computers, and other key electronic devices from "reciprocal" tariffs, including the steep 125% levies imposed on Chinese imports.

The exemption, which affects a range of tech products including semiconductors, solar cells, and memory cards, was announced by US Customs and Border Protection and applies retroactively from April 5. This marks the first substantial break in Trump’s aggressive tariff strategy on China, a move that trade analysts have hailed as a potential ‘game-changer.’

US tech giants, including Apple, Nvidia, and Microsoft, had raised concerns over the rising cost of gadgets made in China, which could have soared if the tariffs remained in place. "This is the dream scenario for tech investors," said Dan Ives of Wedbush Securities, calling the exemption a "game-changer scenario" for the tech industry.

The White House justified the decision, suggesting it would give companies more time to shift production to the US. "America cannot rely on China to manufacture critical technologies like smartphones and semiconductors," said White House Press secretary Karoline Leavitt.

Despite the reprieve, electronic goods are still subject to a 20% tariff related to China's role in the fentanyl trade. Trump, while discussing the tariff strategy, emphasized that the US was generating significant revenue through these taxes and hinted at more details next week.

The exemption comes as Apple and other firms accelerate efforts to diversify their manufacturing base, with countries like India and Vietnam emerging as new hubs for production.