The Impact of US Tariff Exemptions and Related Market Changes

On April 18th, it was reported that as some electronic products such as mobile phones and computers have been clearly included in the temporary tariff exemption list by the US, the export shipments of relevant enterprises have been relatively stable.

Regarding this, an industry insider said that the reason for the US exemption is that these industries basically do not exist in the US, with 70% to 80% of the production capacity in China. In 2024, the proportion of mobile phones imported from China by the US reached 82.1%. In previous years, over 90% of laptops in the US came from China. Although the proportion has slightly declined in the past two years, it is still 73%. If the US does not grant the exemption, these two products will face a shortage in the US market.

Previously, the US government planned to impose tariffs on about $300 billion worth of Chinese goods exported to the US. Among them, consumer goods such as mobile phones and laptops were particularly affected.

Research by a US consulting firm showed that once the tariffs are imposed, the cost of Chinese mobile phones exported to the US will increase by 22%, the price of mobile phones in the US will rise by 14%, with an average price increase of nearly $70 per unit, and sales will decline by 28%.

However, on April 11th, the US Customs and Border Protection announced that according to a memorandum signed by the US president that day, smartphones, routers, and some computers and laptops will no longer be included in the so - called 125% "reciprocal tariffs" previously imposed on Chinese imported goods.

According to the latest policy, products that meet the classification numbers listed in the US Harmonized Tariff Schedule can obtain an exemption from the "reciprocal tariffs". These include key technology products such as smartphones, routers, some computer equipment, and electronic components.

With continuously improving technological strength and product competitiveness, Chinese mobile phone brands have now occupied an important position in the global market. According to data released by IDC, the global smartphone shipments reached 1.24 billion units in 2024. The top five brands were Apple, Samsung, Xiaomi, Transsion, and OPPO. Chinese - brand mobile phones accounted for a total of 56% of the market share.

Not only mobile phones, but according to the US Toy Association, 77% of toys in the US market are manufactured in Chinese factories. On Tuesday, the president and CEO of the US Toy Association warned that the high tariffs imposed by the US president on China might endanger this year's Christmas holiday, leaving American children facing a Christmas without toy gifts.

"Chinese factories have stopped producing (toys for the US market). Reports indicate that major US retailers have actually started canceling orders, and Christmas is at stake," the association's president said in a program.

Meanwhile, cross - border e - commerce platforms such as Shein and Temu recently issued notices on their official websites. Due to recent changes in global trade rules and tariffs, operating costs have increased. To maintain product quality, they will adjust prices starting from April 25th, 2025. Prices will remain unchanged before April 25th.

Facing a series of market changes caused by the tariff policy, on April 17th local time, the US president said, "I think we will reach an agreement with China, and we will reach agreements with everyone. If we can't reach an agreement, then we'll set a goal and finalize it. That's also okay. Things should be all sorted out in the next three to four weeks."

However, considering the previous repeated revisions of the tariff policy by the US government, there are still many uncertainties about whether an agreement can be reached.