The exclusion of smartphones and computers from tariffs was a lie
US Customs issued a notice on Saturday stating that smartphones, computers, and some electronic devices would be excluded from the new 125% tariffs on goods from foreign countries.
After the news spread that some electronic devices would be exempt from the new tariffs, Donald Trump, on social media, dismissed the information as false. The president also stated that these products would not be excluded and would simply be moved to another tariff category.
Electronic devices require semiconductors, which are pieces of technology, most of which are imported from China. Trump said they are analyzing the semiconductors and components of these products in upcoming national security tariff investigations.
Impact on Businesses: Are Product Prices Going Up?
The decision to exempt electronic products from the new tariffs was a relief for Apple. It's important to remember that iPhone manufacturing requires importing components manufactured in India and China.
Another affected company is Sony, which announced a 10% price increase for its PlayStation 5 consoles in Europe, Australia, and New Zealand due to complex exchange rate situations. However, it has not confirmed a price increase in the United States.
Conflicting Decisions Between China and the United States
In early April, Trump imposed a 54% tariff on imports from China. Currently, the Trump administration has raised those imports to a 125% tariff rate.
The Chinese government opted to raise tariffs on US imports to 34% following Trump's decision. China subsequently raised them to 84% and 125% starting Saturday.
Trump said this new tariff policy would correct trade injustices and bring new factories and jobs to his country. Meanwhile, the Chinese Ministry of Commerce declared that it would fight to the bitter end against the US's insistence in this trade war.