Trump outlines phones and computers from high customs duties to China
The administration of US President Donald Trump has excluded smartphones, computers and other electronic devices from the new customs duties, including the 145 % customs imports from China.
According to the announcement of the US Customs and Border Service, the exemption will also apply to the goods that entered the country or left the warehouses after April 5. The Trump administration says that electronics will not be taxed at either the global customs rate of 10 percent, nor at the higher rate that applies exclusively to Chinese products.
The decision comes after numerous warnings from US tech companies that new customs rules could dramatically raise the prices of devices, as most of them are manufactured in China. Many other electronic components, including semiconductors, memory cards and solar cells, have been exempted, making the Trump administration trying to protect the domestic industry from negative consequences.
The United States is the main market for the iPhone, and according to Counterpoint Research, Apple held over half of the US smartphone market last year. About 80 percent of the US iPhones are produced in China, and the remaining 20 percent in India.
Due to the increased customs uncertainty, Apple and other manufacturers, such as Samsung, have been trying to diversify production chains for years, moving some of the capacities to India and Vietnam. After the new customs duties came into force, Apple, according to US media, accelerated the delivery of devices manufactured in India to compensate for potential shortages.
Trump announced high customs duties of goods from almost all countries earlier this week, but changed its decision on Wednesday. He announced that countries that did not respond with US goods duties would be valid for a 90 -day break, during which a unique customs duty of 10% instead of higher rates. China has been exempt from this measure because it responds with countermeasures, introducing 84 percent customs duties on US products. In response to US customs duties from 145%, China further increased its customs duties to US goods from 84% to 125%.
The White House says it is a negotiating mechanism aimed at achieving better trade conditions for the United States. Trump claims that his customs policies correct injustices in the global trade system and help restore factories and jobs in the United States.
