President Donald Trump threatened new tariffs on Chinese electronic goods three days after he announced the exemptions on taxable smartphones, laptops, flash drives and many other technology products that he announced since April 2.
These exemptions provided relief to US tech companies relying on Chinese manufacturing, such as Apple and Chip Company Nvidia.
Then came the announcement on Monday. It sparked Trump’s criticism of the tariffs in his exchanges after suggestions from his enemies and several experts that he effectively retracted many of the sudden tariffs he had placed on China.
But the latest tariffs, which partially returned by the Trump administration on Friday, are just part of the latest taxes imposed on Chinese electronics as part of a continuous, dizzy tariff dispute that has been rolling out over the last few weeks between the two largest economies in the world.
In fact, this tense tariff dispute predates Trump’s current term and is rooted in former President Joe Biden’s obligations on Chinese products in his first inauguration.
So, what tariffs did the Trump administration pull back over the weekend? Are Chinese electronics still subject to US tariffs? How much are they? And how does Trump respond to criticism of the rollback?
What tariffs did the Trump administration waive?
After a dramatic tariff hike between the US and China since last week, Washington appeared to be bent on Friday.
Notices issued Friday by US Customs and Border Protection listed more than 12 product categories exempt from the wave of tariffs Trump has imposed on China since April 2.
It included computers, laptops, disk drives, automatic data processing devices, and products made in China rather than the US. Smartphones, memory cards, semiconductor devices, solar cells, modems, routers and flat panel displays are also included in the exemption list.
The Friday notice specifically mentioned the exemption from these products from the tariffs imposed on China on April 2nd, Tuesday and Wednesday.
The April 2nd tariffs increased the obligations for all Chinese products from 20% to 54%. On Tuesday, Trump announced an additional 50% increase, bringing the total tariff rate to 104%. Then, a day later, after China increased tariffs on US products to 84%, Trump raised his import duties from China to 145%.
An analysis by finance company Capital Economics concluded that Apple CEO Tim Cook gave the exemption a “solid” favor. The exemption covers goods that account for 23% of US imports from China, the company concluded.
What did Trump say on Sunday?
After criticism of the exemption on Friday, Trump has repeatedly said that China has not been exempt from tariffs.
“Everyone who has “off the hook” due to unfair trade balances and financial tariff barriers is using it against us. Trump posted on his true social media platform.
The officials also argued that the tariff exemptions that Chinese electronics benefit from are temporary.
U.S. Commerce Secretary Howard Lutnick said journalist Chinese electronics is now exempt from clearing out the “liberation day” tariffs that Trump first imposed on April 2 in dozens of countries, but the goods will face up to date taxes that are still in preparation.
“(Electronics) are exempt from mutual tariffs, but they are included in semiconductor tariffs that will likely be coming in one or two months,” Lutnick told ABC News on Sunday.
Trump then changed that timeline dramatically. He declared on Monday that he would announce new tariffs on semiconductors from China.
Are there any tariffs from us for Chinese electronic devices at the moment?
Not at all.
The Trump administration has rewind only tariffs imposed on certain electronic devices since April 2nd.
US imported electronics, including iPhones, laptops and other gadgets, have faced at least 20% tariffs since January 20th, when Trump took office on January 20th and April 2nd.
On February 1st, Trump imposed a 10% tax on all Chinese products. He increased it by another 10% on March 4th, increasing the baseline surcharge for Chinese products to 20%.
And the tariff exemption announced on semiconductor products on Friday is also a bit mi-mouth.
Even before Trump took office, Biden had introduced 50% tariffs on all Chinese semiconductors. Most electronic goods imported by the US from China, including smartphones and laptops, run on these semiconductors. It is unclear whether they may also face the brunt of tariffs on semiconductors.
Additionally, a series of Biden-era sanctions on Chinese semiconductor companies have been enforced by restricting access to high-end chips.
What’s next?
Trump said on Monday he plans to impose new tariffs on Chinese electronics. He also increased his rhetoric against Beijing, saying his administration would launch a “national security tariff investigation” to examine the US semiconductor supply chain and its role in China.
China is the largest source of the world’s largest semiconductor chips. In 2023 and 2024, the largest markets for its chip exports were the US ($647 million), Singapore ($128 million), and Italy ($83.5 million), according to data from the Economic Complexity Observatory.
Speaking to CNN, director of National Economic Council director Kevin Hassett, he explained that the US will investigate the semiconductor supply chain before tariffs increase on the industry. Under the US Trade Act, the president has the authority to limit trade in products deemed important to national security after the investigation is completed.
“Semiconductors are an important and important part of many defense equipment. There are semiconductors 232 that carefully study these things and determine what stocks need to be made to protect the United States,” Hassett told CNN on Sunday, referring to section 232 of the US Trade Expansion Act.
What is the state of the US-China trade war?
The latest Salvo over electronic gadgets and semiconductors is a subplot of a massive trade war that has recently escalated by the US and China, which has imposed retaliatory tariffs on each other since Trump’s April 2nd announcement.
Excluding electronic goods exempted on Friday, exports to China to the US now have a 145% collection. There is an additional 125% charge for US products that enter China.
Since the announcement of the massive tariffs, countries have fought to negotiate a better deal with Washington. Last week, the US suspended additional tariffs in most countries for 90 days, instead imposing a 10% tariff on all items
China – declared a “fight to the end” – is not included in those transactions.
The market has been volatile since Trump announced his tariffs. The president argues that stock market turbulence is the “short-term” result of resetting the global trade order, and ultimately proves rewarding for US consumers.
But as expectations for a surge in inflation grow, experts said the US exemption, announced Friday, showed an increase in perception within the management of pain, where tariffs are stored for US manufacturers and consumers.
Apple is just one of many US companies that have gained the upper hand during the trade war. The majority of iPhones (about 90%) are assembled in China through our local partner, Foxconn. China produces an estimated 80% of Apple’s products.
Lobbying groups representing high-tech companies Intel, Nvidia and other companies are urging Washington to negotiate trade transactions that lower trade barriers around the world.
Other sectors are also affected.
In March, Trump placed a 25% tariff on steel and aluminum imports from all countries, including China. Beijing is the world’s largest producer of steel and aluminum. Direct steel exports to the US in 2024 accounted for only about 4.1% of total production. Aluminum exports to the US were high at 16% of China’s total output in 2024.
Then, on April 3, the Trump administration announced a 25% tariff on imported cars. China has been affected once again. Beijing is the world’s largest automaker. Auto exports to the US account for around 2% of total U.S. car imports, or just 0.4% of car sales in 2024, but according to credit rating agency S&P, Chinese car manufacturers are integrated into their global supply chains as new tariffs from either country could have a negative impact.
On May 3rd, we will also kick in a 25% tariff on all imported auto parts.
Trump administration officials have suggested that Americans can avoid price increases for foreign cars by purchasing domestically made items, but experts have warned that cars manufactured in the US do not rely entirely on the American parts.