President Trump has exempted some products from his 145% tariffs on China. Companies like Apple and Nividia will be pleased since most of Apple’s manufacturing is in the communist country, and Nividia is a player in selling to them.
According to CNN, Trump exempted smart phones, computers, computer monitors, and electronic parts from the tariffs.
The notice states that it will apply to products entering the United States or removed from warehouses as early as April 5.
The move comes after the Trump administration imposed a minimum tariff rate of 145% on Chinese goods imported to the United States. The tariffs would majorly impact tech giants like Apple, which make iPhones and other products in China.
One analyst predicted the price of iPhones would increase to around $3,500 if Apple reshored its complex supply chains from China because of the tariffs. In February, Apple announced a $500 billion investment in the U.S. over the next four years to expand its U.S. manufacturing footprint.
Wedbush Securities estimates that roughly 90% of Apple’s iPhone production and assembly is based in China.
Counterpoint Research, a firm that monitors global smartphone shipments, estimated that Apple has up to six weeks of inventory in the United States. Once that supply runs out, prices would go up without a deal.
Reportedly, 90 nations are in talks with the US administration to make deals on tariffs.
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