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Tech Industry’s Exemption From 125 Percent ‘Reciprocal’ Tariff Will Only Last “A Month Or Two” As Products Like The iPhone Will Be Subject To A “Special Focus Type Of Tariff”
In the ongoing battle over tariffs between China and the United States, the tech industry received a bit of a relief, especially for smartphones, laptops, wearables, and more. However, it seems that there is a slight twist, and the tax relief will only be short-lived, as, according to the Trump administration, the 125 percent reciprocal tariff relief is only temporary, and the taxes will continue to be applied to smartphones, laptops, and more in the coming "month or two." Apple's exemption from the 'reciprocal' tariff is only temporary, as the Trump administration will announce a new solution in a month or two We have previously reported that US Customs and Border Protection published exclusions from the list of imports that are bound to follow Trump's new 125 percent reciprocal tariff on China along with the base 10 percent global tariff. As mentioned, the exclusions revolved around “smartphones, laptop computers, hard drives, computer processors, and memory chips.” Apple would have adhered to a total tariff of 145 percent, which includes the 125 percent reciprocal tax and 20 percent fentanyl tax, which President Trump emphasized in a post on Truth Social today. Currently, it is capped at 20 percent, and based on the information, the relaxation is temporary as the exemption from the reciprocal tariff is not a "permanent sort of exemption," according to Commerce Secretary Howard Lutnik Lutnik stated in an interview with ABC News that the tech sector would receive a special focus type of tariff" (via The Verge), emphasizing that the social tariff would include products like the iPhone. President Donald Trump's remarks on Truth Social were quite similar, as he also claimed that the administration would take a closer look at semiconductors and the "whole electronics supply chain" in the forthcoming tariff investigation. We can safely presume that the Trump administration would announce a special tax for the tech industry at a later date, possibly in a month or two, as per the officials. The tariff could be less than the current 125 percent reciprocal tax but could be higher than it was before. For Apple, it means that reliance on China for components and semiconductors would no longer be a long-term solution, as it would seek imports from India and Vietnam. The company could also ramp up its investments in the regions and compel its suppliers to do the same as well. Currently, Apple does manufacture its products in Vietnam, which includes the new M4 MacBook Air and M3 Ultra Mac Studio, but the supply is quite limited compared to China's vast manufacturing facilities. We will keep you posted on the latest, so do stick around for more details. Deal of the Day
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