U.S. Exempts Electronics, Semiconductor from Trump’s Tariffs, Signaling Faltering Strategy

In an important change in policy, the United States has exempted electronics, including smartphones, computer monitors and semiconductors, radical reciprocal prices by President Donald Trump, according to an American customs and border protection (CBP) opinion published late Friday.

This marks the second major adjustment to the aggressive commercial strategy of the administration, following intense criticisms that the prices could precipitate a global recession. However, the climbing of tensions with China, which has shown no desire to negotiate under the terms of Washington, have put the global economy at the forefront.

The CBP opinion specifies that electronics imported into the United States or withdrawn from warehouses from April 5, 2025, is exempt from prices, which include a reference rate of 10% on all imports and higher rates in countries, such as 145% on Chinese products. The decision protects critical technological supply chains, in particular for companies like Apple, which relies on China for 90% of its iPhone production, according to Wedbush Securities.

Counterpoint Research estimated that Apple had up to six weeks of the American inventory, after which prices could have increased without this exemption. Semiconductors, vital for countless devices, are also exempt, potentially benefiting from the manufacturers of Asian fleas like Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung in South Korea.

This exemption follows an earlier adjustment of the tariff regime, where Trump announced a reference rate of 10% and a 90 -day suspension of all prices. Together, these concessions report a prudent recalibration of the Trump administration in the midst of increasing economic concerns. Economists have warned that prices could increase consumer prices, many Americans were already rushing to buy large trucks like electronics and cars while consumers feel the low records.

The decision to exempt from electronics is made in a context of terrible warnings from global economic analysts. Many have argued that the prices, intended to combat commercial imbalances and stimulate American manufacturing, to risk plunging the global economy by disturbing supply chains and increasing costs. The International Monetary Fund and the World Bank have echoed these concerns, projecting significant contractions in world trade if the American-Chinese trade war increases more.

The Trump administration defended prices as a necessary step to reverse the decades of lowering manufacturing and creating American jobs. However, exemptions suggest recognition that certain products, such as semiconductors, cannot be easily produced at national level at competitive costs, highlighting the complexity of the achievement of these objectives.

American-china standoff: no Beijing call

Tensions with China, the main target targets, show no signs of slowdown. The Trump administration said it expects a Beijing call to launch negotiations between the two biggest economies in the world. A White House spokesman said on Thursday: “We are ready to sit down and speak, but the ball is in the Chinese court.”

However, Beijing rejected this opening, with a spokesperson for the Chinese Foreign Ministry indicating Thursday that China will not make the call and will not bow to pressure.

“The door of talks is open, but the dialogue must be carried out on the basis of mutual respect and equality,” a spokesman for the Chinese Ministry of Commerce. “If the United States chooses confrontation, China will respond in kind. Pressure, threats and blackmail are not the right ways to deal with China. ”

The Chinese challenge reflects its determination to face the United States on the front. Beijing has already imposed reprisals on American products and has explored other measures, including restrictions on exports of rare critical land for technological manufacturing. This hard position has fueled speculations that China thinks that it can survive in the United States in this trade war, especially because exemptions like electronic sculpture are perceived as signs of American retirement.

Perceptions of an American strategy that leads

The electronic exemption, associated with previous adjustment, aroused a debate on the sustainability of Trump’s trade policy. Smartphones and computers are the largest export from China to the United States. Some analysts argue that these concessions point out that the United States is already losing ground in the trade war.

“Let us put the pricing exemptions in perspective: the United States imports around $ 100 billion in computers, smartphones and manufacturing equipment for China fleas per year. A total of $ 439 billion in goods were imported from China in the United States in 2024. This is a massive turnover in the pricing policy, “noted Kobeissi’s letter, a leading comment on the world capital markets.

Public feeling reflects this skepticism. The articles on X reflect the growing frustration of Trump supporters who expected a more difficult position.

“Imagine trying to manage a supply chain right now. Every 48 hours, the White House announces, or not of Ann in, or to reinstall or create massive sculptures to a new commercial rule. Why someone build a new factory under these conditions? ” Derek Thompson, an Atlantic writer, wrote.

Meanwhile, business leaders cautiously welcomed this decision, the Consumer Technology Association noting that the exemption “prevents the immediate damage of innovation and affordability”.

However, although the electronic exemption buys time for technological industries, it does not do much to resolve the wider dead end with China. Washington’s hope for negotiations depends on Beijing’s desire to engage, but China’s resolved position suggests a prolonged dead end. With the world’s point and consumer confidence, the Trump administration faces increasing pressure to balance its protectionist program with economic stability.