China Secures Major Trade Victory as US Exempts Phones, Computers from Tariffs

The New Diplomat
Writer

Ad

UK Banks stocks slide amid fears of tax hike as European markets dip

By Obinna Uballa In an era of growing global anxieties, British Banks stocks have tumbled amid concerns over a possible tax squeeze. This development saw NatWest dropped 4.7%, Lloyds 3.7%, and Barclays 3.4% after the Financial Times reported that U.K. bank executives fear Finance Minister Rachel Reeves could impose measures such as a profit surcharge…

Trump Strips Kamala Harris of Secret Service Prrotection Amid Crackdown on Rivals

By Obinna Uballa Kamala Harris, the immediate past United States vice president has reportedly lost her Secret Service protection after the Trump administration abruptly terminated security coverage that is typically extended to such top personalities who have held high-level.offices, a White House official said on Friday. The move ends an arrangement approved by former president…

How a leaked phone call derailed the Thai PM’s career – and the Shinawatra dynasty

Thailand's Constitutional Court strikes again, removing yet another prime minister from office. The country's notoriously interventionist panel of nine appointed judges has ruled that Paetongtarn Shinawatra violated ethical standards in a phone call she had in June with the veteran Cambodian leader Hun Sen, which he then leaked. In it, Paetongtarn could be heard being…

Ad

By Abiola Olawale

It appears China has secured a win in the ongoing trade war as the United States government has announced exemptions for smartphones, computers, and other electronics from its reciprocal tariffs.

The decision, detailed in a late Friday notice by the US Customs and Border Protection, spared these high-tech products from the 125% tariffs imposed on Chinese goods, which, combined with other levies, had reached a staggering 145%.

The exemptions cover a wide range of electronics, including semiconductors, hard drives, and flat-panel displays, many of which are predominantly manufactured in China.

Additionally, machines used in semiconductor manufacturing were exempted. This is a significant development for companies like Taiwan Semiconductor Manufacturing Co. (TSMC), which has announced large-scale investment plans in the US, as well as for the broader chipmaking sector.

Analysts have suggested that this latest move reflects concerns over potential price hikes for American consumers and disruptions to global supply chains, particularly for tech giants like Apple, which relies heavily on Chinese production.

Roughly 90% of iPhone assembly occurs in China, and the exclusions have been hailed as a relief for the tech sector.

This comes in the wake of the tariff wars which have escalated to the imposition of a 125% duty on goods entering the US from China

Recall that Global Head of Technology Research at Wedbush Securities, Dan Ives, had warned that tariffs could have a far-reaching impact on tech consumers and multinational companies like Apple, with iPhone prices expected to increase three times.

According to him, the idea of Apple shifting its entire supply chain to the US is economically impractical.

Ives warned that an iPhone assembled entirely in the United States could retail for as much as $3,500, compared to the current price of around $1,000.

Ad

X whatsapp