The World Welcomes Phone Tariff Exemptions but Remains Cautious

The US government's decision to exempt smartphones, computers, and a range of other products from reciprocal tariffs temporarily relieved global suppliers. However, analysts believe the switch underlines the elevated uncertainty facing global supply chains.

The US Secretary of Commerce Howard Lutnick explained that relief on reciprocal tariffs for smartphones and other electronic items would be temporary. The US plans to include the products in semiconductor fees in a matter of months. President Donald Trump announced he will reveal the rates he plans to impose on semiconductors later this week, adding it does not necessarily pay to be intransigent over such matters.

China was ready for the new US import tariffs and responded with counter-tariffs. The country, though, provided an exemption for US semiconductor companies that outsource their manufacturing to Taiwan. US chip companies, including Qualcomm and AMD, which have their chips made by TSMC, will not face China’s new tariffs based on their country of origin.

“For all integrated circuits, whether packaged or unpackaged, the declared country of origin for import customs purchases is the location of the wafer fabrication plant,” the state-backed China Semiconductor Industry Association (CSIA) declared in a notice on its WeChat account. The body noted that silicon made by companies including Intel, Texas Instruments, and ADI, which operate their own US-based fabrication facilities, may be classified as US origin and liable for tariff rates of 84% or higher.