Apple has received major relief as US President Donald Trump’s administration has exempted smartphones, computers, and several other high-tech products from the latest round of tariffs offering a temporary but significant reprieve to the Cupertino-based tech giant.
The exemption, announced by US Customs and Border Protection late Saturday (IST), means smartphones, computers, hard drives, memory chips, processors and flat-screen displays will not be subject to the new 10% global tariff or the 125% reciprocal tariff on Chinese imports. However, these products still remain under existing 20% tariffs previously imposed on China.
This move is seen as a game-changer for Apple and other tech companies that are heavily reliant on Chinese manufacturing.
“This is the dream scenario for tech investors,” said Dan Ives, Global Head of Technology Research at Wedbush Securities, speaking to CNBC. “Smartphones, chips being excluded is a game-changer scenario when it comes to China tariffs.”
The decision arrives just in time for Apple, which was under immense pressure due to its dependence on Chinese manufacturing. Analysts had warned that prices for the upcoming iPhone 16 Pro Max could jump from $1,199 to nearly $2,000 if Apple passed on tariff costs to consumers.
Apple has worked to diversify its supply chain in recent years, with India emerging as a key manufacturing hub. The company reportedly shipped 600 tonnes of iPhones from India since March, ahead of the tariff announcement. India’s IT Minister Ashwini Vaishnaw confirmed that Apple exported iPhones worth over ₹1.5 trillion ($17.4 billion) from India during the financial year ending March 2025.
Still, about 90% of iPhones are made in China, and transitioning production elsewhere remains a major challenge. Trump’s push for Apple to bring manufacturing back to the US faces obstacles, including a lack of skilled labor and the complexity of rebuilding an advanced supply chain that took decades to establish.
White House Press Secretary Karoline Leavitt reaffirmed the administration’s stance: “President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops. At the direction of the president, these companies are hustling to onshore their manufacturing in the United States as soon as possible.”
Trump previously pressured Apple to manufacture more domestically during his first term. The company responded by announcing a $350 billion US investment plan and even took Trump on a tour of its Texas-based Mac Pro plant in 2019.
The tariff pause has also been welcomed by consumers, who feared rising prices on everyday tech products. Wall Street, too, has responded positively after weeks of volatility. Apple stock, which lost over $700 billion in market value after the initial tariff threat, rebounded sharply following news of the exemption.
With the iPhone 17 launch on the horizon, the exemption offers Apple crucial breathing room to strategize future production and navigate growing geopolitical tensions. However, any shift away from China could provoke economic retaliation, complicating Apple’s already delicate global operations.