Trump administration says will exclude some electronics from reciprocal tariffs
Nashville, Apr 12 (AP): The Trump administration late Friday said they would exclude electronics like smartphones and laptops from reciprocal tariffs, a move that could help keep the prices down for popular consumer electronics that aren't usually made in the US.
It would also benefit big tech companies like Apple and Samsung and chip makers like Nvidia and sets the stage for a likely tech stock rally on Monday.
US Customs and Border Protection said items like smartphones, laptops, hard drives, flat-panel monitors and some chips would qualify for the exemption. Machines used to make semiconductors are excluded too. That means they won't be subject to the current 145 per cent tariffs levied on China or the 10 per cent baseline tariffs elsewhere.
It's the latest tariff change by the Trump administration, which has made several U-turns in their massive plan to put tariffs in place on goods from most countries.
The exemption seemed to reflect the president's realization that his China tariffs are unlikely to shift more manufacturing of smartphones, computers and other gadgets to the US any time soon, if ever, despite the administration's predictions that the trade war prod Apple to make iPhones in the US for the first time.
But that was an unlikely scenario after Apple spent decades building up a finely calibrated supply chain in China. What's more, It would take several years and cost billions of dollars to build new plants in the US, and then confront Apple with economic forces that could triple the price of an iPhone, threatening to torpedo sales of its marquee product.
Trump's decision to exempt the iPhone and other popular electronics made in China mirrors the similar relief that he gave those products during the trade war of his first term in the White House. But Trump began his second term seemingly determined to impose the tariffs more broad this time, triggering a meltdown in the market values of Apple and other technology powerhouses.
The turmoil battered the stocks of tech's “Magnificent Seven” -- Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet and Facebook parent Meta Platforms. At one point earlier this week, the combined Magnificent Seven's combined market value had plunged by USD 2.1 trillion, or 14 per cent, from April 2 when Trump unveiled sweeping tariffs on a wide range of countries.
Some of the losses eased this past Wednesday when Trump paused the tariffs outside of China, paring the lost value in the Magnificent Seven to USD 644 billion, or a 4 per cent decline, from April 2. Now, the stage is set for another tech rally Monday when trading resumes in the US stock market, with Apple likely leading the way because the iPhones made in China remain the company's biggest money maker.
The electronics exemption also should relieve consumer worries that the China tariffs would result in hefty price hikes on smartphones and other devices that have become essential tools of modern living,
It's the kind of friendly treatment that industry was envisioning when Apple CEO Tim Cook, Tesla CEO Elon Musk, Google CEO Sundar Pichai, Facebook founder Mark Zuckerberg and Amazon founder Jeff Bezos assembled behind the president during his January 20 inauguration.
That united display of fealty reflected Big Tech's hopes that Trump would be more accommodating than President Joe Biden's administration's and help propel an already booming industry to even greater heights.
Apple won praise from Trump in late February when the Cupertino, California, company committed to invest USD 500 billion and add 20,000 jobs in the US during the next four years. The pledge was an echo of a USD 350 billion investment commitment in the US that Apple made during Trump's first term when the iPhone was exempted from China tariffs.
The move takes off “a huge black cloud overhang for now over the tech sector and the pressure facing US Big Tech,” said Wedbush analyst Dan Ives in a research note.
Neither Apple nor Samsung responded to a request for comment Saturday. Nvidia declined to comment. The White House did not immediately respond to a request for comment on Saturday.
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Andhra to be developed as knowledge, creator economy hub: CM Naidu
New Delhi/Amaravati (PTI): Andhra Pradesh Chief Minister N Chandrababu Naidu on Friday said the state is taking steps to transform itself into a knowledge and creator economy hub with a strong focus on artificial intelligence and quantum technology.
He noted that Andhra Pradesh has abundant tech-driven youth and the government is formulating plans to train them in futuristic technologies with support from global technology firms.
"Our goal is to transform Andhra Pradesh into a knowledge hub by focusing on AI, quantum computing, data centres, drone cities and space cities. The youth will remain our biggest asset over the next 25 years, and we seek global partnerships to scale up the creator economy," said Naidu during his interactions at the India AI Impact Summit 2026 in Delhi.
Naidu, who participated in the summit in the national capital, also held meetings with several global technology leaders and industrialists to explore collaborations in artificial intelligence, clean energy and innovation ecosystems.
He met Adobe CEO Shantanu Narayen, Autodesk AI Head Mike Haley, Aramco India Director Abdul Rehman AiThukair, LEGO Education Vice President Tom Hall, Aadhaar Founder and CTO Srikanth Nadhamuni, Khosla Ventures Managing Partner Vinod Khosla and others at the AP Pavilion.
The chief minister also held discussions with Saudi Aramco representatives on clean energy projects, including solar initiatives, and invited the company to expand operations in Andhra Pradesh, stating that the state is highly suitable for green energy production.
He sought support from NVIDIA Vice President Callista Redmond for establishing AI Living Labs and proposed partnerships through the Ratan Tata Innovation Hub to promote youth innovation, including collaborations with IIT Tirupati and Indian Institute of Science Education and Research (IISER) Tirupati under the Andhra Pradesh Future Innovation and Research for Science and Technology (AP FIRST) initiative.
Naidu urged Autodesk leadership to support the development of Global Capability Centres in design engineering and requested the establishment of an Innovation Academy in Amaravati aligned with quantum technology, besides proposing AI and robotics learning labs in partnership with LEGO Education.
He also discussed AI-driven smart governance solutions with Quantela Inc Chairman Sridhar Gadhi, while World Bank Group Digital AI Regional Director Mahesh Uttamchandani met Naidu on the sidelines of the summit.
Following the meetings, Naidu visited various exhibition stalls at the summit, including those of NVIDIA, Tata, Intel and Microsoft, and reviewed AI applications across agriculture, healthcare and industry.
