In a pivotal decision that could ripple across global tech markets, the Biden administration has announced a key exemption from punitive tariffs on Chinese imports — sparing smartphones, computers, semiconductors, and other critical electronic components. The move brings immediate relief to major American tech players like Apple and Nvidia, whose supply chains heavily depend on Chinese manufacturing.

The U.S. Customs and Border Protection (CBP) confirmed that the exemption, effective retroactively from April 5, applies to imports already en route or released from origin warehouses. Among the spared products are smartphones, flat-panel displays, memory cards, flash drives, and key semiconductor components — items previously subject to tariffs that soared to a staggering 145% after a White House declaration on April 2.

Apple, which relies on China for nearly 90% of iPhone production and more than 80% of iPads, had faced significant operational risk. The looming tariffs were poised to force price hikes on flagship products like the iPhone and MacBook — changes that would have hit American consumers directly and potentially dampened global sales.

Market confidence had already taken a hit: Apple lost more than $640 billion in market capitalization in the days following the tariff escalation, allowing Microsoft to overtake it as the world’s most valuable publicly traded company.

Dan Ives, head of tech research at Wedbush Securities, described the exemption as “lifting a dark cloud off the U.S. tech sector,” adding that American tech firms "simply don’t have a choice — the supply chain is essentially anchored in Asia."

Nvidia, a leader in AI chip production, also benefits from the exemption, as many of its GPUs and related components are assembled in Chinese factories. With global demand for AI and gaming hardware skyrocketing, avoiding these tariffs helps Nvidia maintain pricing and profit margins.

Had the tariffs remained in place, Nvidia’s consumer and enterprise segments could have seen dramatic cost increases, at a time when supply chains are already strained from semiconductor shortages.

The White House also announced a 90-day postponement of broader “reciprocal tariffs” to negotiate with trading partners — though this does not apply to China, which remains under a reinforced tariff regime of 145%. Beijing has responded with retaliatory measures, fueling fears of a prolonged trade war.

While the latest tariff relief is welcomed by tech firms and consumers alike, analysts warn it may be temporary. Any escalation in trade tensions or abrupt policy reversals could once again disrupt production and pricing in the tech sector.

For now, Apple and Nvidia — along with millions of smartphone users and PC buyers — are catching a much-needed break.