Some electronics to be excluded from reciprocal tariffs

NASHVILLE, Tenn. — The Trump administration late Friday said it would exclude electronics like smartphones and laptops from reciprocal tariffs, a move that could help keep the prices down for popular consumer electronics that aren't usually made in the U.S. It would also benefit big tech companies like Apple and Samsung and chip makers like Nvidia, setting the stage for a likely tech stock rally on Monday. U.S. Customs and Border Protection said items like smartphones, laptops, hard drives, flat-panel monitors and some chips would qualify for the exemption. Machines used to make semiconductors are excluded too. That means they won't be subject to the current 145% tariffs levied on China or the 10% baseline tariffs elsewhere. It's the latest tariff change by the Trump administration, which has made several U-turns in their massive plan to put tariffs in place on goods from most countries. On Air Force One Saturday night, President Donald Trump told reporters he would get into more specifics on exemptions on Monday. "We've been making a lot of money," he said. "It's been the other way around. Other countries, in particular China was making a lot of money." It is not clear how long the exemption will last or if separate tariffs will be negotiated on the various products. The exemption filed Friday night seemed to reflect the president's realization that his China tariffs are unlikely to shift more manufacturing of smartphones, computers and other gadgets to the U.S. any time soon, if ever, despite the administration's predictions that the trade war prod Apple to make iPhones in the U.S. for the first time. But that was an unlikely scenario after Apple spent decades building up a finely calibrated supply chain in China. What's more, It would take several years and cost billions of dollars to build new plants in the U.S., and then confront Apple with economic forces that could triple the price of an iPhone, threatening to torpedo sales of its marquee product. Trump's decision to exempt the iPhone and other popular electronics made in China mirrors the similar relief that he gave those products during the trade war of his first term in the White House. But Trump began his second term seemingly determined to impose the tariffs more broad this time, triggering a meltdown in the market values of Apple and other technology powerhouses. The turmoil battered the stocks of tech's "Magnificent Seven" -- Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet and Facebook parent Meta Platforms. At one point, the combined Magnificent Seven's combined market value had plunged by $2.1 trillion, or 14%, from April 2 when Trump unveiled sweeping tariffs on a wide range of countries. Some of the losses eased this past Wednesday when Trump paused the tariffs outside of China, paring the lost value in the Magnificent Seven to $644 billion, or a 4% decline, from April 2. The electronics exemption also should relieve consumer worries that the China tariffs would result in hefty price hikes on smartphones and other devices that have become essential tools of modern living, It's the kind of friendly treatment that industry was envisioning when Apple CEO Tim Cook, Tesla CEO Elon Musk, Google CEO Sundar Pichai, Facebook founder Mark Zuckerberg and Amazon founder Jeff Bezos assembled behind the president during his Jan. 20 inauguration. That united display of fealty reflected Big Tech's hopes that Trump would be more accommodating than President Joe Biden's administration's and help propel an already booming industry to even greater heights. Apple won praise from Trump in late February when the Cupertino, California, company committed to invest $500 billion and add 20,000 jobs in the U.S. during the next four years. The pledge was an echo of a $350 billion investment commitment in the U.S. that Apple made during Trump's first term when the iPhone was exempted from China tariffs. The move takes off "a huge black cloud overhang for now over the tech sector and the pressure facing U.S. Big Tech," said Wedbush analyst Dan Ives in a research note. In a statement issued Saturday, White House Press Secretary Karoline Leavitt did not address the exemptions specifically but indicated the administration still plans to push for tech companies to move manufacturing to the U.S. "President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops," Leavitt said in an emailed statement. She said the administration has secured U.S. investments from tech companies including Apple, TSMC and Nvidia and these companies are "hustling to onshore their manufacturing in the United States as soon as possible." Neither Apple nor Samsung responded to a request for comment Saturday. Nvidia declined to comment.