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Temporary Tariff Exclusion for Smartphones, According to Commerce Secretary: “Here We Go Again!

Posted on 13 April 2025

Commerce Secretary Howard Lutnick recently announced that the exemption from tariffs on certain electronic products, including smartphones, is only a temporary measure. This declaration follows a recent announcement by U.S. Customs and Border Protection, which stated that certain tech products imported into the country would be free from the high reciprocal tariffs imposed by President Donald Trump earlier this month. On April 9th, Trump paused tariffs for 90 days on digital devices while maintaining a 125% import tax on goods from China and a baseline 10% tariff on other trade partners. The news of this temporary exemption brought relief to consumers in the U.S., as it prevented prices of devices like the iPhone from soaring significantly.

However, during a segment on ABC’s “This Week,” Lutnick emphasized that this reprieve is not permanent. He indicated that smartphones, computers, and various components might soon fall under “semiconductor tariffs,” which are expected to be announced in the next month or two. The intention behind this strategy is to encourage domestic production of critical components like chips and flat screens, reducing reliance on imports from Southeast Asia. Lutnick’s statements highlighted the administration’s commitment to bringing essential manufacturing back to the U.S.

He noted, “We need to have semiconductors, we need to have chips, and we need to have flat panels–we can’t be reliant on Southeast Asia.” He also mentioned that in addition to semiconductor tariffs, tariffs on pharmaceuticals are on the horizon. Despite concerns from economists regarding potential economic downturns resulting from these ongoing tariff strategies, the administration remains focused on reshoring production within the United States.

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