Donald Trump's government has shared a list of tech products that are exempt from the 'Liberation Day' tariffs as the global trade war continues.
The POTUS, 78, declared Liberation Day on 2 April, announcing significant tariffs on imports, with additional 'reciprocal tariffs' for the likes of China and the European Union.
Earlier this week, however, Trump said he would temporarily pause tariffs for other countries, whilst raising tariffs on China to 145 per cent.
China responded by raising tariffs on US goods to 125 per cent on Friday (11 April).
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Now, the US Customs and Border Protection agency has issued new guidance on what tech products will be exempt from the tariffs.
Tech companies like Apple, for example, rely on China for manufacturing a reported 80 per cent of its products and 90 per cent of their iPhones.
Items exempt from 'Liberation Day' tariffs
US Customs and Border Protection have included the following items in their 'updated guidance' exemption list:
• smartphones
• laptops
• solar cells
• flat panel TV displays
• memory sticks
• memory cards
• semiconductors
• solid-state drives
There was a concern amongst analysts that the price of smartphone products, in particular iPhones, would be increasing by £300 or more with the tariffs.
Harry Mills, director at Oku Markets, told Sky News that 'consumers can surely expect a feedthrough straight to prices'.
"Consumers eyeing an upgrade might do well to act sooner and avoid a gamble on a £300 price hike," he said.
Prem Raja, head of the trading floor at Currencies 4 You, warned that the tariffs 'could significantly impact iPhone pricing globally'.
He said to Newspage: "Analysts suggest US prices might surge by up to 43 per cent if Apple passes on the costs, potentially raising the iPhone 16 Pro Max price to approximately $2,300."
Meanwhile, China has told Trump that an 'increase in tariffs will not solve its own problems'.
“Instead, it will trigger sharp fluctuations in financial markets, push up US inflation pressure, weaken the US industrial base and increase the risk of a US economic recession, which will ultimately only backfire on itself,” the Chinese commerce ministry warned.
“If the US insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”
“There are no winners in a tariff war,” Chinese leader Xi Jinping said during a recent broadcast.
“For more than 70 years, China has always relied on itself and hard work for development, never relying on favours from anyone, and not fearing any unreasonable suppression.”
Topics: Donald Trump, Politics, US News, China
Anish Vij