Tariffs and Electronics: How the White House Balances Trade & Consumer Costs
14 April 2025 · Uncategorized ·
Source: · https://finance.technews.tw/2025/04/14/white-house-still-focuses-on-consumers/
Trump's tariff policies have introduced market volatility, yet consumer electronics like mobile phones and laptops received temporary exemptions. This reflects a government consideration of consumers’ potential burden.
CNBC analysis suggests that while President Trump employs an assertive governance style, he also acknowledges Wall Street advice against antagonizing consumers; the import tax exemption for tech products further indicates the difficulty U.S. companies face in replacing China's supply chain within the short term.
On November 12 Eastern Time (ET), U.S. Customs and Border Protection announced tariff exclusion codes covering smartphones, computers, semiconductors, LCDs, SSDs, wireless network equipment, among other items—temporarily exempting them from high rates but still subject to an additional 20% fentanyl tax.
U.S. Commerce Secretary Wilbur Ross stated on November 13 that the electronic product tariff exemption is temporary and new "semiconductor tariffs" will be implemented within one or two months.
Despite ongoing uncertainty surrounding trade policies, tech giants like Apple experienced a notable boost; Evercore ISI estimates approximately 80% of iPads and over half of Mac computers are produced in China. Research firm Counterpoint predicts that U.S. inventory could sustain six weeks before facing higher tariffs, potentially necessitating price increases for companies such as Apple.
Trump’s use of tariff leverage aims to incentivize manufacturing relocation to the United States; however, many believe achieving "Made in America" is more complex than it appears and shifting supply chains presents substantial challenges. Analyst Dan Ives from Wedbush estimates that domestic iPhone production could increase costs by up to $3500 per unit.
A spokesperson for China’s Ministry of Commerce stated that exempting certain electronic products was a minor step toward rectifying past actions, expressing hope the U.S. would completely remove reciprocal tariffs and engage in equitable dialogue.
(Translated by MoneyDJ News; Image source: Shutterstock)
CNBC analysis suggests that while President Trump employs an assertive governance style, he also acknowledges Wall Street advice against antagonizing consumers; the import tax exemption for tech products further indicates the difficulty U.S. companies face in replacing China's supply chain within the short term.
On November 12 Eastern Time (ET), U.S. Customs and Border Protection announced tariff exclusion codes covering smartphones, computers, semiconductors, LCDs, SSDs, wireless network equipment, among other items—temporarily exempting them from high rates but still subject to an additional 20% fentanyl tax.
U.S. Commerce Secretary Wilbur Ross stated on November 13 that the electronic product tariff exemption is temporary and new "semiconductor tariffs" will be implemented within one or two months.
Despite ongoing uncertainty surrounding trade policies, tech giants like Apple experienced a notable boost; Evercore ISI estimates approximately 80% of iPads and over half of Mac computers are produced in China. Research firm Counterpoint predicts that U.S. inventory could sustain six weeks before facing higher tariffs, potentially necessitating price increases for companies such as Apple.
Trump’s use of tariff leverage aims to incentivize manufacturing relocation to the United States; however, many believe achieving "Made in America" is more complex than it appears and shifting supply chains presents substantial challenges. Analyst Dan Ives from Wedbush estimates that domestic iPhone production could increase costs by up to $3500 per unit.
A spokesperson for China’s Ministry of Commerce stated that exempting certain electronic products was a minor step toward rectifying past actions, expressing hope the U.S. would completely remove reciprocal tariffs and engage in equitable dialogue.
(Translated by MoneyDJ News; Image source: Shutterstock)