Pakistan: Good news for smartphone buyers after Trump’s tariff

Despite growing concerns over US President Donald Trump’s aggressive new tariff strategy, consumers in Pakistan can rest easy as prices of iPhones, laptops, and other tech gadgets won’t be rising anytime soon.

A recent decision has spared major tech companies like Apple, Nvidia, Dell, and Microsoft from higher costs and potential supply chain issues amid the escalating trade tensions with China.

The US Customs and Border Protection released a list of tariff codes now exempt from the steep import duties, with the exemptions retroactively effective from April 5, 2025. These exclusions cover 20 major product categories, including computers, laptops, disk drives, memory chips, semiconductor devices, and flat-panel displays. Notably, the exemptions also apply to Trump’s general 10 per cent baseline tariffs on imports from most countries, providing relief to companies manufacturing outside China, such as Apple’s facilities in India and Taiwan.

Although Trump offered no detailed explanation for the move, the decision — announced late Friday — comes after mounting pressure from major US tech firms concerned about soaring product prices due to the tariffs.

Analysts had warned that the price of a flagship iPhone could climb from $1,599 to as much as $2,300 under the 125 per cent tariff rate imposed on Chinese goods.

Dan Ives, Head of Technology Research at Wedbush Securities, described the announcement as a “game-changer” for tech investors. “The exclusion of smartphones and chips is the most bullish news we could have hoped for this weekend,” he said. “Big Tech can finally exhale.”

In 2024, the U.S. imported $41.7 billion worth of smartphones and $33.1 billion worth of laptops from China, according to US Census Bureau data. Experts believe that the sweeping tariffs would have severely impacted the already inflation-hit consumer electronics market.

However, it’s important to note that while these exemptions apply to Trump’s “reciprocal tariffs” — recently raised to 125% for Chinese goods — a separate 20% tariff remains in place on electronics linked to the ongoing U.S. fentanyl crisis.