The Trump administration says electronics like smartphones and laptops will be excluded from ‘reciprocal’ tariffs, a move that could help keep prices down for popular consumer electronics that aren’t usually made in the U.S.
The announcement on Friday would also benefit big tech companies like Apple and Samsung.
The U.S. Customs and Border Protection said items like smartphones, laptops, machines used to make semiconductors and flat-panel monitors would be exempt.
'Addicted' to low-price Chinese goods
It might at least be the end of an era of inexpensive consumer goods in America. For four decades, and especially since China joined the World Trade Organization in 2001, Americans have relied on Chinese factories for everything from smartphones to Christmas ornaments.
As tensions between the world’s two biggest economies — and geopolitical rivals — have risen over the past decade, Mexico and Canada have supplanted China as America’s top source of imported goods and services. But China is still No. 3 — and second behind Mexico in goods alone — and continues to dominate in many categories.
China produces 97% of America’s imported baby carriages, 96% of its artificial flowers and umbrellas, 95% of its fireworks, 93% of its children’s coloring books and 90% of its combs, according to a report from the Macquarie investment bank.
Over the years, American companies have set up supply chains that depend on thousands of Chinese factories. Low tariffs greased the system. As recently as January 2018, U.S. tariffs on China averaged just over 3%, according to Chad Bown of the Peterson Institute for International Economics.
“American consumers created China,” said Joe Jurken, founder of the ABC Group in Milwaukee, which helps U.S. businesses manage supply chains in Asia. “American buyers, the consumers, got addicted to cheap pricing. And the brands and the retailers got addicted to the ease of buying from China."