Trump exempts phones and computers from his trade war with China.

In a surprising move, the United States announced the exemption of smartphones and computers from the additional customs duties imposed by President Donald Trump recently, in a clear attempt to reduce the burden on American consumers and maintain the momentum of the technology sector. The announcement came through a notice issued late Friday by the U.S. Customs and Border Protection, stating that the exemption includes a range of electronic goods imported from China, notably smartphones and key components used in computer manufacturing. These products were subject to high customs tariffs of up to 145%, imposed as part of a package of measures aimed at reducing reliance on China. It is noteworthy that these exemptions do not cover everything, but they reduce the general customs duties by 10% announced by Trump earlier this month, as well as mitigate the impact of additional punitive tariffs imposed on Chinese imports. Originally, semiconductor components are exempt from these tariffs, in addition to being exempt from an additional 10% duty applied to a number of Washington's trading partners. This step comes amidst Trump's escalation of his trade battle against China, where his administration recently imposed new tariffs of 125% on a wide range of Chinese goods, which came into effect this week. This percentage is added to previous tariffs of 20% imposed due to what the U.S. administration deemed a Chinese role in the supply chains of the drug substance fentanyl, in addition to other tariffs dating back to previous presidencies, raising the customs burden to 145% on a large number of products imported from the world's second-largest economy. The immediate response from investors in the technology sector was positive, with Daniel Ives, a financial analyst at Wedbush Securities, describing the decision as the "best news for technology investors," warning that the absence of these exemptions would have led to a significant setback that could have set back American technology for a whole decade and hindered progress in artificial intelligence. The new step represents an attempt to balance political and trade pressures on one hand, and the interests of a vital sector that forms the nerve center of the U.S. economy on the other, at a time when global competition for technological leadership is escalating.