Trump Administration Says Smartphone Tariff Exclusions Are Temporary
Summary: Trump’s smartphone tariff exemption is only temporary, with officials set to roll out new electronics tariffs next week. Once the exemption ends, smartphones and other devices will fall under semiconductor duties, likely driving up prices.
Last week was a whirlwind of emotions. People initially expected Trump’s tariffs to drive up the prices of electronic devices like smartphones, computers, and more. However, in yet another surprising U-turn, Trump announced that electronics like smartphones and computers are exempt from these tariffs.
Tariff exemptions are temporary
Does it sound too good to be true? Yeah, it turns out it is. Speaking to ABC News, Commerce Secretary Howard Lutnick revealed that the smartphone tariff exemptions are only temporary. Over the next week, officials will announce the electronics industry tariffs and include these devices alongside duties on semiconductors.
What does this mean? This means that devices like smartphones, tablets, and computers will fall under the semiconductor group when it comes to tariffs. It might not be as high as what it was previously, but we can still expect to see a rise.
Encouraging companies to build in America
According to Lutnick, the goal is to encourage companies to “reshore” and for products to be “built in America.”
“All those products are going to come under semiconductors, and they’re going to have a special focus type of tariff to make sure that those products get reshored. We need to have semiconductors, we need to have chips, and we need to have flat panels — we need to have these things made in America. We can’t be reliant on Southeast Asia for all of the things that operate for us. So what [President Donald Trump’s] doing is he’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two. So these are coming soon.”
However, ABC News anchor Jonathan Karl challenged Lutnick’s notion by saying, ”It’s not like you can open a factory tomorrow to build iPhones.”
Lutnick responded by pointing at Panasonic who started building an EV plant in November 2022. “ I don’t necessarily think so. I think the idea is that we can manufacture here in America. As I said, there’s a — I saw Panasonic, the battery company. Right? A Japanese company. They built an amazing factory in Kansas, which they’re opening now. They were putting it in the ground when Donald Trump was President, just finishing now.”
We still don’t know how much the products will cost. So, if you’ve been eyeing something, now might be the best time to buy it before these tariffs hit and prices jump.
