Crypto markets make slight rebound as Trump excludes smartphones, laptops, semiconductor machines from reciprocal tariffs

In the most recent chapter of the Trump tariff drama that’s keeping economists worldwide anxious, the United States unveiled new guidelines on Friday, exempting certain technology devices—like laptops, smartphones, and equipment essential for semiconductor production—from the reciprocal tariffs previously enforced by the U.S.

The updated tariff guidelines leave out various electronic devices, including laptops, semiconductors, solar panels, flat-screen displays, flash drives, memory cards, and solid-state drives. Nonetheless, while these items are currently exempted, additional tariffs could be introduced in the future.

China’s Ministry of Commerce characterized the exemptions as “a minor step by the U.S. towards correcting its flawed approach of unilateral ‘reciprocal tariffs’” and stated that Beijing was still evaluating their implications.

The Ministry also reiterated its strong criticism of the U.S. tariffs, asserting that Washington was “seriously disrupting the international economic and trade order” and “causing harm to others without deriving any benefits.” It urged the U.S. to:

“Make a significant move towards correction, completely abandon the misguided ‘reciprocal tariffs’, and pursue a path of mutual respect and resolving conflicts through equitable dialogue.”

145% tariffs severely impact tech companies like Apple

This exemption offers temporary relief to companies such as Apple, which produces over 90% of its devices in China—including iPads and Mac computers. In the absence of these exemptions, Apple could have faced a price hike of up to 85% on its U.S.-sold iPhones to maintain profit margins.

To counter the risk of potential tariffs, the company had already implemented emergency actions, including chartering flights to transport millions of iPhones from India to the U.S. The Economic Times of India noted:

“Apple’s reliance on China, where up to nine out of ten of its iPhones are manufactured, turned Donald Trump’s so-called ‘Liberation Day’ into six agonizing days for the tech giant.”

Despite the uptick, Apple has a tough road ahead

Even with attempts to diversify manufacturing to countries like India and Vietnam, Apple’s substantial reliance on China’s established infrastructure persists. Reconstructing its complex supply chains in other locations may take years, and producing iPhones entirely in the U.S. is not feasible due to labor shortages and elevated costs.

The memes circulating on social media provide a humorous yet telling reminder that American reindustrialization is not an overnight endeavor.

Critics of Trump have not held back on their opinions, including political commentator Ed Krassenstein, who remarked:

“It’s becoming quite humorous at this point. Trump insisted there would be ‘no exemptions’ to his reciprocal tariffs, and his supporters cheered… Now, he’s reversing course again and introducing numerous exemptions. And once more, his supporters are jubilant.”

Political commentator Keith Olbermann added:

“Trump: Tariffs are flawless and essential, and I won’t budge. Also, Trump: here’s a staggering number of tariff exemptions for companies that have supported me.”

Meanwhile, the cryptocurrency markets responded positively to this development, with Bitcoin hitting $86,000 for the first time since ‘Liberation Day’ on April 2. It may be wise to grab some popcorn as we approach a new week—more tariff actions are on the horizon.

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