US President Donald Trump’s administration granted exclusions from steep reciprocal tariffs to smartphones, computers and some other electronics imported largely from China, providing a big break to tech firms like Apple that rely on imported products.

In a notice to shippers the US Customs and Border Protection agency published a list of tariff codes excluded from the import taxes, with retroactive effect from 12:01 am EDT (0401 GMT) on April 5.

It featured 20 product categories, including the broad 8471 code for all computers, laptops, disc drives and automatic data processing. It also included semiconductor devices, equipment, memory chips and flat panel displays.

The notice gave no explanation for the move, but the late-night exclusion provides welcome relief to major technology firms such as Apple (AAPL.O), Dell Technologies (DELL.N) and many other importers.

Trump’s action also excludes the specified electronics from his 10 percent “baseline” tariffs on goods from most countries other than China, easing import costs for semiconductors from Taiwan and Apple iPhones produced in India.

Asked on Saturday about his reasoning for the exemptions and plans for semiconductors, Trump told reporters on Air Force One: “I’ll give you that answer on Monday. We'll be very specific on Monday ... we’re taking in a lot of money, as a country, we're taking in a lot of money.”

Wedbush Securities analyst Dan Ives called the announcement “the most bullish news we could have heard this weekend.”

“There is still clear uncertainty and volatility ahead with these China negotiations.... Big Tech firms like Apple, Nvidia, Microsoft and the broader tech industry can breathe a huge sigh of relief this weekend into Monday,” Ives said in an industry note.

Many tech company CEOs have embraced Trump as he begins his second term, attending his January 20 inauguration in Washington and celebrating with him afterward. Apple CEO Tim Cook hosted a pre-inaugural ball and has visited Trump at his home in Florida.

For the Chinese imports, the exclusion only applies to Trump’s reciprocal tariffs, which climbed to 125 percent this week, according to a White House official. Trump's prior 20 percent duties on all Chinese imports that he said were related to the US fentanyl crisis remain in place.

But the official said Trump would launch a new national security trade investigation into semiconductors soon that could lead to other new tariffs.

White House spokesperson Karoline Leavitt said in a statement that Trump has made clear the US cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones and laptops.

But she said that at Trump’s direction, major tech firms, including Apple and chipmakers Nvidia (NVDA.O) and Taiwan Semiconductor (2330.TW) “are hustling to onshore their manufacturing in the United States as soon as possible.”

Tariff Pain

The exemptions suggest an increasing awareness within the Trump administration of the pain his tariffs could inflict on inflation-weary consumers.

Even at a lower 54 percent tariff rate on Chinese imports, analysts predicted the price of a top-end Apple iPhone could jump to $2,300 from $1,599. At 125 percent, economists and analysts have said US-China trade could largely halt.

Smartphones were the top US import from China in 2024, totaling $41.7 billion, while Chinese-built laptops were second, at $33.1 billion, according to U.S. Census Bureau data.

Apple recently chartered cargo flights to ferry 600 tons of iPhones, or as many as 1.5 million, to the US from India, after it stepped up production there in an effort to beat Trump's tariffs, Reuters reported on Friday.

Trump campaigned to win back the White House last year largely on a promise to bring down prices that, fueled by inflation that tarnished the economic reputation of former President Joe Biden and his Democratic allies.

But Trump also promised to impose the tariffs that have become central to his economic agenda, and he has dismissed turbulence in financial markets and price increases from the levies as a disturbance necessary to realign the world trading order as he has envisioned.

His so-called “reciprocal tariffs,” however, raised fears of a US recession and drew criticism from some Republicans, who do not want to lose control of Congress in next year’s mid-term elections to Democrats, who have attacked Trump’s policies.

Trump delayed higher duty rates for 57 trading partners and the European Union last week, leaving most countries with a 10 percent tariff as they seek to negotiate trade deals with Washington.

The US president, who is spending the weekend at his residence in Florida, told reporters on Friday he was comfortable with the high tariffs on China but had a good relationship with President Xi Jinping and believed something positive would come out of the trade conflict between them.

Financial markets were in turmoil again on Friday as China matched Trump’s latest tariff increase on US imports to 125 percent, raising the stakes in a trade war threatening to upend global supply chains.

US stocks ended a volatile week higher, but the safe haven of gold hit a record high during the session and benchmark US 10-year government bond yields posted their biggest weekly increase since 2001 alongside a slump in the dollar, signaling a lack of confidence in the US.