President Donald Trump has exempted smartphones, computers, and other electronics from his latest round of tariffs, providing relief to tech companies like Apple and Microsoft. The exemption, announced by the U.S. Customs and Border Protection on Friday (April 11), removes these items from the 125% levies on Chinese imports and the 10% global tariff on most countries.

The decision comes amid concerns from U.S. tech firms about potential price hikes, as many devices are manufactured in China. The exemptions, backdated to April 5, also cover semiconductors, solar cells, and memory cards. Dan Ives, global head of technology research at Wedbush Securities, spoke to the BBC and called the move a "game changer" for tech investors.

The White House indicated that the exemptions aim to give companies more time to move production to the U.S. White House Press Secretary Karoline Leavitt stated, "President Trump has made it clear America cannot rely on China to manufacture critical technologies." The administration is pushing companies to move to onshore manufacturing as soon as possible.

However, the exemptions have sparked controversy. Some Democrats, including Rep. Greg Casar and Sen. Chris Murphy, criticized the move as favoring big businesses like Apple. Politico reported that the decision comes after a tumultuous week in the markets, with Trump's global trade war causing stock market declines.

Despite the exemption, some electronics could still face a 20% tariff if made in China, due to a separate order related to an "illicit drug crisis." The highest-level trade talks between the U.S. and China since Trump's first term are set to resume next week, potentially impacting future tariff decisions.

Scott Ryfun