Trump spares tech giants from tariffs, but most China-dependent consumer goods face levies

Trump exempts smartphones from tariffs, but most China-dependent imports still hit

US President Donald Trump has excluded smartphones, laptops, and select consumer electronics from his sweeping new “reciprocal” tariffs on China, providing a reprieve for American tech firms and consumers. The exemption, following a rocky week for financial markets, spares the two highest-value Chinese imports to the US—smartphones and laptops, together worth $74 billion last year, The Financial Times reported.

Tech giants including Apple, Nvidia, and Microsoft stand to benefit significantly. Apple, in particular, remains heavily reliant on Chinese supply chains. However, analysts caution that even if Apple reserved its entire iPhone production in India for the US, it would cover only about half of its annual American shipments.

Everyday goods still in the crosshairs

While high-end electronics avoided tariffs, 46 of the 50 most China-dependent US imports—each worth over $1 billion annually- are still targeted. These include everyday household goods like microwaves, air conditioners, food processors, toys, and electric fans.

China accounted for 90% of microwave imports, 75% of toys, and nine out of 10 electric fans brought into the US last year. Popular toymaker Mattel, which produces 40% of its products in China, warned of potential price hikes even before Trump’s latest tariff escalation.

The levies, which reach up to 125%, could heavily impact consumers. “There is a much bigger chance of significant price increases for consumers buying these types of products today,” warned Chad Bown, senior fellow at the Peterson Institute for International Economics.

Finding new suppliers is no easy task

Experts say relocating production away from China won’t be easy, especially for complex goods like mobile phones or game consoles, which require intricate supply chains and specialised labour.

“Rapid decoupling will be quite difficult,” said Jason Miller of Michigan State University. Even as companies explore Southeast Asian alternatives, Chinese raw materials and components remain integral to many products.

Allie Renison of SEC Newgate noted that while some supply chains are shifting, the extent to which other countries can meet US standards and political expectations remains uncertain.

As tariffs hit more consumer products, concerns are rising that some US importers may stop buying from China altogether, creating potential shortages alongside rising prices.