- The US Customs and Border Protection updated its guidelines on April 13, exempting smartphones from reciprocal tariffs.
- Commerce Secretary Howard Lutnic said these products will be subject to a 'special focus type of tariff' applied to semiconductor products.
- On being asked whether these upcoming tariffs will mean higher prices for the iPhone, Lutnic said he doesn't necessarily think so.
In our last report, U.S. President Donald Trump offered relief to other nations from their reciprocal tariffs while imposing 125% tariffs on Chinese products. However, this tariff was later taken back on certain electronic products, including smartphones. In the latest turn of events, we’ve learned that this isn’t a permanent solution as these products will be subject to a special kind of tariff.
On the 13th of April, the U.S. Customs and Border Protection updated its guidelines, exempting smartphones, tablets, laptops, and other electronics from reciprocal tariffs; even the electronics products shipped from China. However, Commerce Secretary, Howard Lutnic, told ABC news that these products will be looped into “a special focus type of tariff” applied to semiconductor products.
When asked whether these upcoming tariffs will mean higher prices for the Apple iPhone, Lutnic responded with, “I don’t necessarily think so. I think the idea is that we can manufacture here in America.” He shared an example of the Panasonic EV factory in Kansas and wants Apple to do the same for iPhones.
A U.S.-made iPhone doesn’t seem like a sound idea as currently more than 80% of Apple’s manufacturing takes place in China. Shifting it all over to the U.S., plus the added cost of native labor, will cost the company billions in a short period. Plus, it would still result in higher-priced devices compared to the cost of an iPhone right now.
While the idea of U.S.-made iPhones is still far from reality, this limited exemption should offer a breathing room to manufacturers while they figure out a solution to the tariff problem. What are your thoughts on this? Would you be willing to pay more if the iPhones were made in the U.S.? Let us know in the comments below.
