Trump Exempts Electronics and GPUs from China Tariffs to Ease Tech Costs

[AleksandarK]

President Trump announced late Friday that a range of electronics imported from China will not be hit by his new reciprocal tariffs, according to a US Customs and Border Protection notice. The exemption, which applies to items arriving in the United States or leaving bonded warehouses on or after April 5, covers smartphones, computer monitors, semiconductors, various electronic parts, and, importantly, high-performance GPUs. Tech companies were bracing for big cost increases. Apple, for example, assembles about 90 percent of its iPhones in China and holds roughly six weeks of inventory in US warehouses. Without this exemption, consumers would likely have seen higher prices once that stock ran out. Framework, the modular laptop maker, has already paused US sales of some Laptop 13 models and discounted others by up to 12 percent after a new 10 percent tariff on Taiwanese parts squeezed their margins.

The GPU market got another break thanks to a clever workaround in the United States-Mexico-Canada Agreement. A research firm SemiAnalysis pointed out that graphics cards made in Taiwan can still enter the US tariff-free if they undergo final assembly in Mexico or Canada. That loophole applies to digital processing units and related circuit boards, which means companies relying on NVIDIA's top-tier accelerators for AI won't see an immediate price jump. White House Press Secretary Karoline Leavitt said these steps are part of a two-pronged plan: offering short-term relief to keep consumer prices down while at the same time pushing major tech firms like Apple, TSMC, and NVIDIA to invest billions in US manufacturing. However, many experts warn that high-precision components are still largely made in Asia, so building up domestic production capacity could take months or even years and may remain more expensive in the meantime.

Update: President Donald Trump posted on Truth Social the following: "There was no Tariff "exception" announced on Friday. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff "bucket."We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations."



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[leonavis]

This whole mess is gonna be a great movie someday.

 

[kondamin]

This whole mess is gonna be a great movie someday.

That would take getting someone to make great movies again.
doesn't look like that's going to happen any time soon.

If they were serious about this they would have taken a page out of the Indian playbook and set up a reasonable timeline to get manufacturers who want market access to produce locally or tax the hell out of the imported products.

And just ban Temu and other obviously to cheap junk from amazon and other such markets.

 

[john_]

That would take getting someone to make great movies again.
doesn't look like that's going to happen any time soon.

They'll start with the intent of making a "great movie", only to end up with Netflix quality.

In any case I think the whole "tariffs everywhere" idea started so wrongly and so unprepared, that in my opinion looks more like stock market manipulation than a real economic strategy for the country.
In the end I believe US is going to put a standard 10% tariff in everything, but stuff coming from China - they will keep a higher tariff there, only to somehow justify the current mess and give some arguments to those behind this ""tariffs" idea, to stay out of jail when the next president gets elected.

 

[BorisDG]

Commerce Secretary Lutnick says tariff exemptions for electronics are only temporary

Lutnick said on "This Week" administration's exemptions on electronic devices from tariffs is temporary, with "semiconductor tariffs" likely come in "a month or two."

abcnews.go.com

 

[kondamin]

They'll start with the intent of making a "great movie", only to end up with Netflix quality.

In any case I think the whole "tariffs everywhere" idea started so wrongly and so unprepared, that in my opinion looks more like stock market manipulation than a real economic strategy for the country.
In the end I believe US is going to put a standard 10% tariff in everything, but stuff coming from China - they will keep a higher tariff there, only to somehow justify the current mess and give some arguments to those behind this ""tariffs" idea, to stay out of jail when the next president gets elected.

I think it started out as a negotiation tactic which worked as everyone of significance is at the negotiation table. (china just started negotiating)
And since the entirety of congress is a bunch of inside trading ****** it was abused to make a quick buck.

it's sad the world folded so soon

 

[dragontamer5788]

Commerce Secretary Lutnick says tariff exemptions for electronics are only temporary

Lutnick said on "This Week" administration's exemptions on electronic devices from tariffs is temporary, with "semiconductor tariffs" likely come in "a month or two."

abcnews.go.com

 

[ZoneDymo]

sigh, worst timeline

 

[Deleted member 187435]

Commerce Secretary Lutnick says tariff exemptions for electronics are only temporary

Lutnick said on "This Week" administration's exemptions on electronic devices from tariffs is temporary, with "semiconductor tariffs" likely come in "a month or two."

abcnews.go.com

Do they realise how they are destroying their own credibility and that of the dollar by flip-flopping so much. Nobody knows where they stand or can plan investments, it's a shambles.

 

[dragontamer5788]

Do they realise how they are destroying their own credibility and that of the dollar by flip-flopping so much. Nobody knows where they stand or can plan investments, it's a shambles.

Talk to any of Trump's supporters. They will follow this pattern. This chaos is 'The Art of the Deal' to them.

So no. Don't expect any change. Expect more of this.

 

[trsttte]

looks more like stock market manipulation than a real economic strategy for the country

I can't decide which is worse - I might actually prefer if it was all a market manipulation strategy, given how bad of an economic strategy this is. At least there would be some intelligence involved, as an economic stategy there's 0! ZERO!

 

[dragontamer5788]

I can't decide which is worse - I might actually prefer if it was all a market manipulation strategy, given how bad of an economic strategy this is. At least there would be some intelligence involved, as an economic stategy there's 0! ZERO!

It's impossible to move manufacturing over if the tariffs are lifted within years. Let alone weeks or days.

It takes a year to build a factory and often 20 years before that factory pays itself back. Manufacturers are not concerned with short term 2 or 4 year political cycles.

This is 100% market manipulation.

No one wins except Trump and his inner circle of Billionaires playing the stock market. Trump has learned he can make the stock market jump or fall with just a few tweets. They're gonna keep milking us until someone stops them. (And because the base is happy with the 'Art of the Deal' argument to defend flip flops, do NOT expect his supporters to revolt over this).

--------

I suggest Americans to buy computers roughly timed up with Tim Cooks dinners and donations to Trump.

I guess this pause was NVidia CEO Jensen having a dinner last week with Trump actually. But you get the gist: a pause when a CEO has dinner with Trump.

We have a pause for now. Then the tariffs will come back which forces a new $million dinner with some CEO and Trump. And then a few days later we will see tariffs lifted and that CEO richer for it.

The flipflop IS the plan. It's hugely beneficial to Trump's inner circle.

 

[docnorth]

Tariffs à la carte. Ok self-respect might not be a politicians strong point, but such low level is candidate for the Guinness book

 

[mb194dc]

They still get the original 20% on..., it'd be more moronic to put the extra 125% on as well because of the USMCA loophole.

All would just be shipped to Mexico and Canada, "remanufactured" and enter the US tarrif free. So would be a great boost to them.

The opposite of what Trump wants to do..!

 

[maxfly]

But...but... he's going to bring manufacturing and all those high paying jobs back to the USA by golly! What a joke. This has always been and always will be a pipe dream.
American businesses aren't interested in creating the thousands of multi million dollar plants in the states required to build their products for a mere 500% to 1000% price increase. They will simply do what @mb194dc suggests and ship their goods out of China to less taxed countries, then move them into the US. Once their current supply has been depleted they will have had no problems finding other suppliers like Vietnam, Malaysia, India etc that will provide the same low cost manufacturing/production they're accustomed to. Oh, and aren't being hit with the 125% tariffs.
Low cost manufacturing in the USA won't be revived by some hair brained 4 year tariff plan. You need ultra cheap labor to even think about that "plan". Where exactly is that going to come from? Certainly not in America...

 

[eidairaman1]

Headline should state President Trump for the title of thread

 

[Clawedge]

This can be a rather complex issue. There are so many possible ways this could go, and both sides have their respective arguments.

All I want to say is that.... I am keeping out of this.

 

[Space Lynx]

going to be interesting as our allies continue to stop buying treasury bonds and selling the ones they currently have off because they can no longer handle this nonsense.

oh wait, its already slowly started to happen.

going to be fun when we can't pay the interest on our 37 trillion debt cause no one is buying our treasury bonds anymore, lmao

 

[Hecate91]

Where exactly is that going to come from? Certainly not in America...

The US has a lot of cheap labor working on farms and in factories, it can't be that hard to press a few buttons on automated machines making phones or laptops.

I don't want to get into this too much though, it makes no sense why TPU is allowing politics, but I know why they are for obvious reasons.

 

[boidsonly]

False. Come on, folks. Make some attempt at getting it right.
These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff “bucket.” The Administration are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.

 

[Scircura]

The US has a lot of cheap labor working on farms and in factories, it can't be that hard to press a few buttons on automated machines making phones or laptops.

Farming: just throw some seeds on the ground, how hard can it be
Electronics manufacturing: just push some buttons on the machine, how hard can it be

It's pretty common to be dismissive of things you're ignorant about. I do it too. But it's important to try and recognize that instinct and combat it. Be curious. Take a look at some of the electronics factory tours W1zzard's shared on TPU. There's still need for skilled technicians on sections of assembly.

P.S. Trade policy: just apply some tariffs, how hard can it be

 

[R-T-B]

False. Come on, folks. Make some attempt at getting it right.
These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff “bucket.” The Administration are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.

Fetanyl comes from China now? Jesus christ this is comical.

 

[katzi]

The US has a lot of cheap labor working on farms and in factories, it can't be that hard to press a few buttons on automated machines making phones or laptops.

I don't want to get into this too much though, it makes no sense why TPU is allowing politics, but I know why they are for obvious reasons.

You can't be serious.

Your cheap labour is being viciously deported to a gulag in El Salvador, and you can't exclude "politics" from a subject that is centered on politics. No wonder you lot don't understand anything about the way the world works. I'm not even from the US and I understand how the US works better than you do lol.

 

[R-T-B]

There's still need for skilled technicians on sections of assembly.

Yes, w1zzard would know this. That powercolor factory visit was very enlightening. These things don't just come out of "magic machines."

 

[Hecate91]

Electronics manufacturing: just push some buttons on the machine, how hard can it be

The manufacturing isn't the hard part, building the factories because it would affect the companies margins in the short term is the hard part. There is plenty of labor to go around when inflation and unemployment numbers are likely much higher than the govt wants to admit.

You can't be serious.

Your cheap labour is being viciously deported to a gulag in El Salvador, and you can't exclude "politics" from a subject that is centered on politics. No wonder you lot don't understand anything about the way the world works. I'm not even from the US and I understand how the US works better than you do lol.

Trump made an exception for farm workers, these tariffs are pointless when exceptions keep being made.
And no people outside the US reading news headlines don't know how it works.