When President Trump initially rolled out his sweeping tariffs, he excluded certain electronics like iPhones and laptops from the import taxes.
However, this exemption won’t last long, as recent statements suggest these products will eventually be subject to the tariffs.
Upcoming Tariffs on Electronics
Commerce Secretary Howard Lutnick clarified the situation during an appearance on ABC News’ This Week.
Responding to a question from host Jon Karl, Lutnick explained that while electronics were spared for now, they will soon fall under the tariffs targeting the semiconductor sector.
He indicated that these electronics would face tariffs similar to those on pharmaceuticals and autos, designed to encourage reshoring of manufacturing back to the U.S.
Reshoring and Tariff Plans
Lutnick emphasized that the goal is to have these products made in the U.S.
He explained that the electronic exemptions were temporary, part of a broader strategy to use tariffs to encourage domestic production.
This is why electronics like smartphones, laptops, and other essential tech items—currently exempt from Trump’s 125% import tax on Chinese goods—will soon face levies.
The Potential Impact on Apple and Other Tech Companies
This exemption, which was initially revealed in a notice late on Friday, was a temporary reprieve for gadgets such as smartphones and laptops.
However, experts warn that ramping up U.S. production of these items would take years, if it’s even possible.
For instance, over 80% of Apple products, including iPads and Mac computers, are made in China.
The announcement came shortly after a significant drop in Apple’s market value, losing $640 billion in the days following the tariff news.
The Challenges of Domestic Manufacturing
Even if tech companies like Apple could move production to the U.S., the logistical and financial challenges would be enormous.
Bank of America Securities analyst Wamsi Mohan suggested that manufacturing the iPhone 16 Pro Max in the U.S. could increase its price by nearly 91%, from $1,199 to around $2,300.
Other analysts, such as Dan Ives from Wedbush Securities, predicted the price could soar to $3,500 per unit.
Labor costs in the U.S. are significantly higher than in China—around $200 per unit compared to $40 in China.
Plus, the U.S. lacks a skilled workforce for specialized manufacturing tasks, making such a shift even more difficult.
Apple CEO Tim Cook has pointed out the shortage of qualified tooling engineers in the U.S., further complicating the potential move.
Apple’s Response to Tariff Pressures
In response to these challenges, Apple has been actively working to mitigate the impact of the tariffs.
The company has already chartered flights to expedite the shipment of 1.5 million iPhones from India to the U.S.
This move highlights Apple’s dependence on its global supply chain and underscores the difficulties it faces in quickly adjusting its production logistics to handle the new tariffs.
What’s Next?
As these tariffs loom closer, the tech industry, especially companies like Apple, will need to navigate the increasing pressures of production costs, global supply chains, and shifting policies.
While the initial exemption provided some relief, the clock is ticking, and soon, electronics will face the same tariff challenges as other imported goods.
