KUALA LUMPUR – President Donald Trump has exempted smartphones, computers, and other tech products from his recently imposed reciprocal tariffs, according to new guidelines released by U.S. Customs and Border Protection late on Friday.
The exemption follows Trump’s earlier decision to impose a 145% tariff on products imported from China, a move that raised concerns for major tech companies such as Apple, which manufactures most of its products, including iPhones, in China, CNBC reported.
The guidelines also exclude other electronics and components, such as semiconductors, solar cells, flat-panel TV displays, flash drives, and memory cards. The White House stated on Saturday that the exemptions aim to provide companies with time to relocate production to the U.S.
White House Deputy Press Secretary Kush Desai emphasised that Trump “has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops.” He added that “at the direction of the President, these companies are hustling to onshore their manufacturing in the United States as soon as possible.”
The 20 product categories listed in the CBP guidelines will be exempt from the 125% tariff on Chinese imports and the 10% baseline tariff on goods from other countries. However, the 20% tariff on all Chinese goods remains in effect.
This move is seen as a win for tech companies like Apple, which manufactures the majority of its products in China. According to Evercore ISI, China produces 80% of iPads and over half of the Mac computers made.
Dan Ives, Global Head of Technology Research at Wedbush Securities, described the exemptions as a “game changer” for the tech sector, particularly for smartphones and chips.
“Smartphones, chips being excluded is a game changer scenario when it comes to China tariffs,” Ives was quoted as saying.
He also noted that the threat of tariffs had cast a “black cloud over tech,” warning that “no sector was going to be more hurt than big tech.”
Since the tariff announcement, Wall Street has experienced significant volatility, with the S&P 500 falling more than 5%. The 10-year Treasury yield rose sharply, reflecting growing investor concerns over Trump’s trade policies.
In response to these developments, the White House introduced a 90-day tariff reprieve for most countries, replacing previous tariff rates with a universal 10% levy, excluding China.
The new exemptions are retroactive for goods leaving warehouses by April 5, 2025, offering greater clarity for U.S. shippers. These products will be exempt from tariffs once processed by U.S. Customs.
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim underscored the significant risk posed by the U.S.’s 24% reciprocal tariffs on Malaysia’s exports, particularly semiconductors worth RM200 billion. Anwar pointed out that semiconductors account for 65% of the nation’s electrical and electronic exports, a vital sector for Malaysia’s economy.
Penang, a key player in Malaysia’s semiconductor production, has voiced concerns over the potential impact. Speaking at a Raya Aidilfitri open house at the PICCA Convention Centre in Butterworth, Anwar urged Penang and the nation to unite in overcoming this challenge.
“I have advised Chief Minister (Chow Kon Yeow) that when faced with a crisis, we can choose to ‘megeluh’ (sulk) or we can pool our efforts to find new solutions,” Anwar said. “We need to utilise Malaysia’s strengths, such as its good ties with the US, Europe, China, and its neighbours in Asean.”
He also confirmed that ASEAN countries had agreed to work together in seeking solutions, highlighting Malaysia’s collective strength.
Penang has taken action by forming a Tariff Monitoring Taskforce and a Trade Adaptation Toolkit to help exporters navigate the growing tariff complexities. Anwar welcomed the Trump administration’s 90-day tariff pause, which provides temporary relief for Malaysia and other countries.
In 2023, Penang-based companies exported RM76 billion worth of goods to the US, contributing 17% of Malaysia’s total exports, with electrical and electronics forming the bulk. – April 13, 2025