Tech Industry Push Led to Change

The move came after strong warnings from top US tech companies like Apple, Microsoft, and Nvidia. These firms told the government that high tariffs would cause the prices of everyday gadgets to rise sharply. Since a large number of these products are made in China, the companies feared they would have no choice but to pass the extra cost on to American buyers. For example, some reports said iPhones could cost nearly three times more if the full tariffs were applied. Apple, in particular, was at great risk, as around 80% of the iPhones sold in the US are made in China. The rest are made in India. Tech firms have been trying for years to shift production to other countries like India and Vietnam, but building new supply chains takes time. Trump’s decision gives them more breathing room to finish that process. The White House confirmed that the exemptions were made so companies can start or speed up their US manufacturing plans.

White House Sticks to Its Long-Term Goal

While this decision may seem like a step back, Trump’s team insists the goal is still to reduce dependence on China. White House Press Secretary Karoline Leavitt said in a statement that the president wants critical tech items like smartphones, chips, and laptops to be made in America. She added that many companies are now moving quickly to open factories inside the US. Trump himself spoke about the decision while on a flight to Miami. “We’ll be very specific,” he told reporters. “But we’re taking in a lot of money. As a country, we’re taking in a lot of money.” Some electronic goods are still subject to a 20% tariff that relates to the US-China conflict over fentanyl. That was clarified by White House Deputy Chief of Staff for Policy Stephen Miller. Even so, tech companies are relieved. The exemptions help avoid short-term damage while still supporting Trump’s larger plan of shifting production back home.

China Faces Higher Tariffs While Others Get a Pause

Earlier this week, Trump announced a 90-day pause on the new tariffs for most countries—except China. China will still face a much higher import tax, which has now increased to 145%. Trump said this was because China had planned to retaliate with its own 84% tariff on US goods. He made it clear that only countries that didn’t fight back would get the temporary break. These countries will now only face a 10% flat tariff until July. The White House described this pause as a smart move to get better trade deals from foreign governments. Trump has long said that unfair global trade practices have hurt American workers. He believes higher tariffs will help fix that and bring back jobs. While many experts are still debating whether tariffs really work in the long run, there’s no doubt that this recent change gives some space to US companies. Tech firms, especially, have welcomed the move as a sign that the government is listening to their concerns while still pushing ahead with its bigger trade strategy.

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