US leader Donald Trump is exempting smartphones, computers and other electronics from his global "reciprocal tariffs." Importantly, this comes after a tough week in markets amid the trade war.
Points of attention
- While these products are spared from current tariffs, duties may apply if manufactured in China, impacting technology supply chains.
- White House advisor affirms exempted goods may still be subject to 20% tariff on China due to the 'illegal drug crisis.'
What is known about Trump's decision?
Journalists note that the new instructions were published by the US Customs and Border Protection.
It exempts consumer electronics, many of which are made in China, from Trump's tariff escalation with China and the 10 percent base tariff on all countries.
In addition, it is indicated that equipment used for the production of semiconductors will also be exempt from tariffs.
While these electronics will not be subject to the tariff rates that Trump imposed this week as part of his trade war with China, these goods could still be subject to significant duties if they are manufactured in China.
White House senior adviser Stephen Miller has already made a statement on this matter.
According to the latter, these goods are still subject to the tariff on China as originally announced at 20%.
What is important to understand is the tariff rate that Trump imposed because of the "illegal drug crisis."
