In a surprise move, the Trump administration has exempted smartphones, computers, and other electronics from tariffs, including those imported from China. According to Bloomberg, the US Customs and Border Protection (CBP) updated its guidance late last night to exclude these products from the tariffs, which were set to increase this week.

The exemption comes as a relief to tech companies, which have been bracing for the impact of higher tariffs on their supply chains. The move is seen as a significant concession, given the administration's previous stance on tariffs as a key tool in its trade war with China. The exemption covers a range of products, including laptops, hard drives, computer processors, and memory chips, as well as machines used by companies like Taiwan Semiconductor Manufacturing Co. to make semiconductors.

The decision follows Trump's announcement of a "90-day pause" on higher tariff rates for most countries, while increasing the rate for Chinese imports. The rapid evolution of the trade war has led to a range of reactions from companies, including Nintendo's decision to pause Switch 2 preorders and Apple's reported rush to import 600 tons of iPhones from India prior to the tariffs going into effect. OnePlus, meanwhile, raised the price of its smartwatches without providing a reason.

The exemption is likely to have significant implications for the tech industry, which relies heavily on global supply chains. The move may help to mitigate the impact of tariffs on consumer prices, which had been expected to rise as a result of the trade war. However, the long-term implications of the exemption remain unclear, and the industry will be watching closely to see how the administration's trade policies evolve in the coming weeks and months.

The exemption also raises questions about the administration's broader trade strategy, which has been marked by a series of sudden shifts and reversals. The move may be seen as an attempt to ease tensions with China, which has been a key target of the administration's trade policies. However, it remains to be seen whether the exemption will be enough to ease the trade war, which has been a major source of uncertainty for the tech industry and the broader economy.

As the situation continues to evolve, one thing is clear: the tech industry will be closely watching the administration's next moves, and waiting to see how the exemption will impact their businesses and consumers. With the trade war showing no signs of slowing down, the stakes are high, and the industry will be holding its breath as it waits to see what comes next.