What does the decision to exempt technology companies mean from customs duties?

In a remarkable shift in the strict commercial protection policies pursued by US President Donald Trump, his administration announced the exemption of smartphones, computers and other consumer electronic products from mutual customs tariffs, in a move that reflected the extent of the pressure facing the administration from giant technology companies, led by “Apple” and “Invteenia”.
While the decision may be seen as a temporary maneuver, it represents the first actual relief in Trump’s escalating approach to China, and it reflects official awareness that the cost of definitions may affect the American consumer first.
This exemption came after months of escalating trade tensions that negatively affected global markets, and posed a direct threat to global supply chains and the American technology industry. The decision included retroactive impacts as of April 5, and included smartphones, mobile computers, hard disks, computer processors, memory slices, and flat displays.

Industrial pressure and political decline

According to the statement of the American Customs and Protection Authority, the exemptions narrow the scope of the fees imposed by 125% on China and 10% on the rest of the countries, in light of the administration’s awareness of the difficulty of manufacturing these products within the United States in the short term. This comes after warnings from technology giants that the fees may be translated directly to the increase in prices on the American consumer, as well as supply disorder.
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Informed sources said that major companies, most notably “Apple”, have intensified pressure during the past months to push the administration towards a review of the fees, especially after they made major local spending pledges as part of its plans to expand within the United States.

Consumer gains and temporary calm in the trade war

Consumers welcomed this decision, especially after a wave of demand for electronic devices in anticipation of their high prices. The move is also seen as an indication of the presence of flexibility in Trump’s hardline commercial position, after customs tariffs caused market turmoil and led to a large wave of sale in shares.

$ 390 billion of imports under exemption

American trade estimates indicate that exemptions include imports of up to 390 billion dollars, of which more than $ 101 billion from China only, according to Gerard Dybo, assistant director at the Rand Center for China Research.
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Smartphones are the largest category within the imported imports, as the United States imported more than $ 41 billion in Chinese mobile devices in 2024, about 9% of the total Chinese imports. Computers and similar devices also amounted to more than $ 36 billion.

Electronics and semi -conductors alone represent about 22% of the total US imports from China, making the exemption very influential both economies.

A large loophole in the customs duties wall

Analysts believe that exemption is a large loophole in the American customs duties system, as it avoids leading companies and consumers shocking high costs. However, the decision does not include most other commodities coming from China, which means continuing trade tension in several areas, especially intermediate and capitalist consumer goods.

Small parcels … additional modification

The White House memo also included the abolition of what is known as “small parcel exemption” coming from China, which allowed the entry of commodities worth less than $ 800 without customs duties, reflecting a selective militancy in commercial policy. This step is explained as a specific exception to certain countries such as South Korea, the home of “Samsung”, from 10%public fees.

Fintanel fees are still standing

It is noteworthy that the additional fees imposed by 20% on China regarding the export of materials associated with the Fntanil industry were not canceled, and the previous fees of the current state of Trump were not affected, indicating that the new exemption does not completely dispel the management strategy to pressure Beijing.

Technology companies position

“The technology industry in the United States has a strong voice, and although the White House was opposed to exemptions at the beginning, the reality finally imposed itself in Washington,” said Dan Evez, an analyst at Widbush Securities. He added: “Nevertheless, negotiations with China are still in a state of mystery and volatility.”