Donald Trump caves on tariffs: Smartphones and PCs get a pass

The Donald Trump administration has granted retroactive tariff exemptions for smartphones, computers, and other electronics imported largely from China, sparing them from steep 125 percent duties.

Apple iPhone with AI features
Apple iPhone with AI features

The U.S. Customs and Border Protection listed 20 excluded product categories, including laptops, semiconductors, and memory chips. No explanation was provided, but the move offers relief to major tech firms like Apple and Dell, Reuters news report said.

The decision highlights growing recognition of the consumer and market damage caused by Donald Trump’s tariffs. Despite promising to lower prices, Donald Trump’s aggressive tariff agenda raised fears of a recession and drew criticism from both Democrats and Republicans ahead of the midterm elections.

Donald Trump’s tariff policy, particularly his aggressive approach toward Chinese imports, reflects a deeply flawed economic strategy that hurt American consumers and businesses far more than it helped. While the administration attempted to portray these tariffs as a bold stance against unfair trade practices, the reality is that the policies were chaotic, contradictory, and economically damaging.

One of the most glaring contradictions in Trump’s approach was his last-minute decision to grant sweeping exclusions for products like smartphones, laptops, and other electronics. These exemptions, coming retroactively and without clear explanation, undermined the administration’s original justification for the tariffs. If the goal was to protect American industries and jobs, why exempt the very products that account for billions in trade and are dominated by Chinese manufacturing?

These selective exemptions expose the fundamental weakness of the tariff policy: it imposed significant costs on consumers and businesses while delivering minimal strategic gains. U.S. tech companies, including giants like Apple and Dell, were forced to navigate an unpredictable trade environment, where policy was dictated more by political optics than coherent economic planning.

Moreover, the tariffs failed to bring back significant manufacturing jobs to the U.S., despite being touted as a tool for revitalizing domestic industry. Instead, they contributed to higher prices for American consumers — precisely the kind of inflation Donald Trump claimed he wanted to combat.

His insistence on “reciprocal tariffs” ignored basic economic principles and sparked fears of a trade war-fueled recession. Even members of his own party criticized the policy, recognizing it as a political liability and an economic misstep. The haphazard way these tariffs were applied — followed by unexplained late-night reversals — revealed a lack of strategic foresight and consistency.

In the end, Donald Trump’s tariff policy was more about projecting strength than delivering results. It alienated allies, destabilized markets, and created unnecessary uncertainty in global trade. The last-minute exemptions were not a sign of success, but an admission that the policy, as originally implemented, was untenable.

Baburajan Kizhakedath

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