Smartphones, computers and other electronics are exempted from the growing tariffs trade offensive by the Trump administration.
A notification released late Friday night by the US Customs and Border Protection Office said a host of popular high -tech products for American consumer will not be subject to tariffs and will buffer the public from the increasing cost of omnipresent goods required in everyday life.
Before the administration gave smartphones and electronics exemption, Apple’s popular iPhone – most of which are manufactured in China – could see an increase in prices on a large scale, depending on how Apple reacts to sweeping levy. Experts estimated that the cost may jump by hundreds of dollars.
iPhone The 16 Pro Max 256 GB, which retails for $ 1,199, will jump by $ 1,874, as per an analyst of UBS Investment Research.
Interestingly, the new notice details exemption that covers various electronic goods, including smartphones and components entering the United States from China.
China and the United States have traded barbs over tariff hike in the last two weeks. China said on Friday that it will increase the tariff on US goods from 84% to 125%. High tariffs were about to come into force on Saturday, and China said it would not respond to future American tariff hike. After stopping tariffs on most other countries, President Trump’s universal tariffs on China are increased to 145% now.
Experts had said that the tariffs increased the risks of recession and possibly facilitate inflation.
According to Stephen Miller, the Deputy Chief of Staff of the White House, these electronics are still subject to 20% tariffs on goods imported from China. The tariff declared by the Trump administration on 1st February, was intended to prevent drugs from being sent from Mexico to the United States.
White House Press Secretary said in a statement on Saturday that President Trump “has clarified that the US cannot rely on China for the manufacture of important technologies… Now these companies are hustling to increase their manufacturing in the United States as soon as possible.”