Momentary Relief for the Tech Industry Following Tariff Exemption
Tech companies have already began to suffer as a result of the tariffs, with Apple having lost $773 billion of its valuation a week after the tariffs were announced. No doubt tech leaders, particularly those closest to the President, therefore see this exemption as a temporary relief, as many continue to manufacture outside of the U.S.
The move could be seen as a partial de-escalation of Trump’s trade war with China, as the 20 product types listed in the announcement account for nearly a quarter of U.S. imports from China, according to Paul Ashworth, the chief North America economist for Capital Economics.
On the part of the White House, however, this move appears to be temporary. Karoline Leavitt, the White House spokeswoman, has said that President Trump has “made it clear America cannot rely on China to manufacture critical technologies.” Therefore, he is encouraging tech companies to “onshore their manufacturing in the United States as soon as possible.”
