On Friday, April 11, President Donald Trump issued a memorandum to clarify that smartphones and certain other electronics are not subject to the now-125% “reciprocal” tariff on imports from China or the 10% “baseline” tariff on imports from most other trading partners. Customs and Border Protection issued a related guidance late that evening. Specific products covered by the April 11 memorandum are listed below.
The memorandum spares covered imports from the “reciprocal” and “baseline” tariffs by expanding an existing carveout for semiconductors. However, the president and Commerce Secretary Howard Lutnick have indicated that these goods will soon be subject to sector-specific “reshoring” tariffs levied under Section 232 of the Trade Expansion Act of 1962. The administration began the process of imposing these tariffs on April 14.
The Trump administration has shown a willingness to provide exceptions to and negotiate the future of the “reciprocal” and “baseline” tariffs imposed under the International Emergency Economic Powers Act (IEEPA). However, it has been reluctant to provide similar relief from sector-specific tariffs imposed under Section 232, which it views method of “reshoring” production in targeted sectors to the United States. For more information on the distinction between these trade authorities, click here.
Fentanyl Tariffs on China Still Apply
The products listed in the memorandum remain subject to the 20% tariff on imports from China imposed in response to the fentanyl crisis. Imports of these products from Canada and Mexico that do not qualify under the United States-Mexico-Canada Agreement (USMCA) also remain subject to a 25% tariff.
National Security Tariffs Aimed at “Reshoring” Production Forthcoming
On April 13, President Trump stated in a Truth Social post that “There was no Tariff ‘exception’ announced on Friday” and that the goods in question “are just moving to a different Tariff ‘bucket.’” According to the president’s post, the administration will be reviewing “Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.”
On April 14, the Department of Commerce requested public comment as part of an investigation into semiconductors, semiconductor manufacturing equipment (SME) and their derivative products under Section 232 of the Trade Expansion Act of 1962. This Federal Register notice—first posted on Public Inspection as is common practice—states that the investigation began on April 1. While the unofficial notice does not mention smartphones or other electronics, they are likely to be covered by the resulting tariffs as derivative products of semiconductors. The final list of covered derivative products may differ from those covered by the April 11 memorandum.
Section 232 enables the president to impose tariffs of up to 50% above the existing rate if “an article is being imported into the United States in such quantities or under such circumstances as to threaten or impair the national security.” The Trump administration has relied on this same statutory authority to impose 25% tariffs on imports of steel, aluminum and automobiles with the goal of “reshoring” those sectors to the United States. Investigations into imports of copper, lumber, pharmaceuticals, and critical minerals remain ongoing.
While such investigations can take up to 270 days, the Trump administration has iincluded a relatively short 21-day window for public comment and could move to impose tariffs soon after that window ends around May 7.
[1] This information is intended to be a summary and overview of the impacted goods and should not be relied upon as definitive. For specific product information, please consult the Harmonized Tariff Schedule.
