News Trump enacts tariff exemptions for computers, smartphones, and more

[Admin]

The tech industry is delighted that computers, smartphones, semiconductor chips, and more are officially exempt from tariffs on foreign imports.

Trump enacts tariff exemptions for computers, smartphones, and more : Read more

 

[ohio_buckeye]

Seems like a good move initially to reduce some of the price hikes.

 

[bit_user]

Are you sure that it includes PC components, not just fully-assembled PCs?

Also, I expect cases, heatsinks, and radiators are still be affected by the 25% steel & aluminum tariffs, which did not get suspended.

Lastly, the "de minimis" exemption on small (sub-$800) packages ends May 2nd. That will hit anything shipped directly from abroad (AliExpress, Temu, some sellers on Amazon & ebay, etc.). I'm not sure exactly how that's going to work, but I think you'll be assessed a customs fee that you pay in order to pick up or receive your package. But, it's the recipient who pays. So, don't expect it to be incorporated into sellers' prices.

 

[Giroro]

"The complete list is available in the official bulletin"

No it's not.

 

[Notton]

What it must feel like hopping on a ride at Rollercoaster Tycoon while the player is still editing the tracks.

 

[thestryker]

Are you sure that it includes PC components, not just fully-assembled PCs?

https://hts.usitc.gov/search?query=8542

 

[thestryker]

"The complete list is available in the official bulletin"

No it's not.

Sure it is, but you have to look up what all those headings/sub correspond to here: https://hts.usitc.gov/

 

[btmedic04]

sadly, the only groups that will benefit from these exemptions will be the big businesses. they wont reduce their prices, theyll simply pocket the price difference, while consumers continue to pay inflated prices

 

[bigdragon]

This tariff exemption move is good for consumers and big tech companies, but it also severely undermines the whole point of the tariffs. I'm completely confused on what the objective and strategy is now. I also get the impression that the big tech executives have too much influence when they can create special exemptions for their businesses.

 

[bit_user]

https://hts.usitc.gov/search?query=8542

So, what's that column labelled "2", which says 35% ?

 

[bit_user]

This tariff exemption move is good for consumers and big tech companies, but it also severely undermines the whole point of the tariffs.

Yeah, I can imagine more and more exemptions getting created, as that 145% rate on Chinese imports begins to bite and retailers & consumers start to recoil at the prices of things.

As for tech products, recall that the same thing happened last time around. There was initial panic about motherboards & graphics cards getting hit, but then they were exempted for a time period that kept getting extended.

I'm completely confused on what the objective and strategy is now.

I think the objective hasn't really changed. The strategy is what's now in doubt.

I also get the impression that the big tech executives have too much influence when they can create special exemptions for their businesses.

Well, yes but I'm sure their case played well, with AI being seen as a strategic priority. Also, it's not just tech executives...

 

[thestryker]

So, what's that column labelled "2", which says 35% ?

I'm assuming those were the existing tariffs, but I'm not certain as I was just using the list for verifying what was in the memo.

 

[bit_user]

sadly, the only groups that will benefit from these exemptions will be the big businesses. they wont reduce their prices, theyll simply pocket the price difference, while consumers continue to pay inflated prices

Well... you can use a tool like https://pcpartpicker.com/ or https://camelcamelcamel.com/ to see how prices have shifted over time. If you see a bump in the price of something that should be exempt, that's how you'll know you're getting the short end of the stick. As it relates to specifically computer parts, things like SSDs and GPUs are more volatile than the 10% we're currently talking about, for exporters like Vietnam, but perhaps you can find a trend over a variety of different kinds of products. And if the country of origin is China, well you're going to easily see whether or not the price jumped by 145%.

IMO, few businesses feel they have the luxury to raise prices before necessary. There are still enough options you have among what brands to buy and in retail channels to use, that competitive pressures should apply and keep price increases mostly at bay on the exempted items.

I would also note that the US dollar has been weakening, lately. That's also going to hit the prices of imported goods, but more subtly.

• https://www.google.com/finance/quote/USD-EUR?window=1Y
• https://www.google.com/finance/quote/USD-GBP?window=1Y
• https://www.google.com/finance/quote/USD-JPY?window=1Y