US President Donald Trump has exempted certain consumer electronics – largely manufactured in China – and parts such as semiconductors from duties, amid fears that tariffs on such devices could stifle the US economy.
However, it remains to be seen whether this will shore up investor confidence in the market, as Trump’s unpredictability is a source of concern to trade allies.
The Consumer Technology Association has previously estimated that the proposed duties could increase the cost of laptops by 46%, smartphones by 26%, and game consoles by 40%.
Trump is still considering sectoral tariffs on some goods, including semiconductors.
The news is a temporary win for companies like Apple, which has pledged to build more electronics in the US, a move that could take decades and would require subsidies.
It is also a victory for the tech industry, which creates high-value jobs and hires highly educated workers, something that other economies, such as China, are currently achieving more effectively.