Apple, Nvidia, DELL get Tariff Exclusion
The Trump administration granted tariff exclusions for imports of computers, smartphones, and other electronics primarily supplied by China, exempting them from much of President Donald Trump’s hefty 125 percent duties.
The U.S. Customs and Border Protection (CBP) agency published a list of tariff codes excluded from these duties in a notification to shippers
The exclusions took effect at 12:01 a.m. on April 5. The CBP listed 20 product categories, including a broad category under code 8471, which included all computers, laptops, disc drives, and automatic data processing devices. The list also included semiconductor devices, equipment, memory chips, and flat-panel displays.
Major U.S. technology companies like Apple and Dell Technologies, along with many other importers, will be relieved by this late-night announcement, even though the notice did not explain the Trump administration’s decision
“The exemptions benefit tech companies like Apple, which produce most of their goods in China. Over half of Mac computers and 80% of iPads are produced domestically”, according to Evercore ISI. Since Trump declared tariffs, Wall Street has become more volatile and uncertain, which has led to a sharp decline in stock prices.
The S&P 500 dropped by over 5% until Friday’s close of business. The benchmark 10-year Treasury yield experienced one of its biggest weekly jumps ever, rising more than 50 basis points because of investors selling off US assets due to Trump’s trade policy.
It’s possible that the rise in the bond market forced the White House to reverse some of its policies, like giving most countries a 90-day tariff reprieve in favor of the universal 10 percent rate that was declared on Wednesday, excluding China.
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