Trump exempts telephones, computer systems and different electronics from his tariffs on Chinese items

Electronics like smart phones, computers, flash drives, semiconductors, and solar cells will be exempt from the Trump administration’s wide-ranging tariffs on China and other nations, according a guidance from U.S Customs and Border Protection released late Friday night.

The policy is a major boon to U.S. tech companies like Apple, which produces most of iPhones in China.

“This is the dream scenario for tech investors,” Dan Ives, global head of technology research at Wedbush Securities, told CNBC. “Smartphones, chips being excluded is a game changer scenario when it comes to China tariffs.”

Tech CEOs courted Trump throughout his campaign and since he has taken office, with Elon Musk donating more than $290 million to Trump and Republican-affiliated efforts, while Meta, Amazon, and Apple’s Tim Cook each gave $1 million to Trump’s inauguration.

Tech companies, and the net worth of their billionaire CEOs, were among those hardest-hit when markets tanked on the tariff news.

A handful of tech stocks like Apple, Microsoft, Nvidia, Netflix, Amazon, Meta, and Google parent Alphabet make up over a quarter of the value of the S&P 500 at any given time — and all of these companies would face major financial challenges if global electronics supplies were hit with sustained tariffs.

The Friday announcement is the latest sudden adjustment in a tariff policy that’s changed every few days, after Trump announced on Wednesday he would pause a series of “reciprocal” tariffs on U.S. trading partners that rattled financial markets, while increasing tariffs on China to 125 percent.

This is a breaking news story and will be updated with new information.

Source: independent.co.uk