By Mae Anderson
The Trump administration on Friday night said they would exclude electronics as smartphones and laptops of reciprocal rates, a movement that could help keep prices for popular consumption electronics that are generally not performed in the United States.
It would also benefit large technological companies such as Apple and Samsung and chips manufacturers such as NVIDIA.
Customs and border protection of the United States said that articles such as smartphones, laptops, hard drives, flat panel monitors and some chips would qualify for the exemption. The machines used to make semiconductors are also excluded. That means that they will not be subject to current 145% rates collected in China or 10% reference rates in other places.
It is the last tariff change of the Trump administration, which has made several U turns in its massive plan to establish rates in the goods of most countries. The objective is to encourage more domestic manufacturing. But exemptions seem to recognize that the current electronics supply chain is virtual in Asia and it will be challenge to change that to the United States, for example, about 90% of iPhones occur and assemble in China, according to Wedgh Securities.
The movement takes off “a huge Ovhang black cloud for now in the technological sector and the pressure facing the great technology,” said Wedbush analyst give in a research note.
Trump previously said he would consider exempting some tariff companies.
Neinder Apple or Samsung responded to a comment application on Saturday morning. Nvidia declined to comment.
The White House did not immediately respond to a comment request on Saturday.
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