Tariff exemptions: Trump does Tim Apple a solid

The tariff exemptions reported in the dead of night by the CBP on various electronics goods, including smartphones, semiconductors, electronic circuits and TVs, represent a partial de-escalation of President Trump’s trade war with China. The 20 product types included in the notice that are now exempt from the 125% reciprocal tariff (see here) account for 23% of US imports from China. There were even bigger winners in Asia, however, since the exemptions apply to all countries not only China. At a stroke, 64% of US imports from Taiwan are now exempt from the 10% reciprocal tariff, 44% from Malaysia, and almost 30% from both Vietnam and Thailand. 10% to 12% of imports from India, Korea and Mexico will also now be exempt.