Donald Trump in a surprise overnight move has exempted smartphones, computers and some electronics equipment from all import tariffs. The latest exemptions include the 145% tariff on imports from China as well as all other “reciprocal” tariffs from other countries. The move is likely caused by Trump’s fears that electronic consumer prices would spike dramatically in USA.
Thailand will benefit from Trump’s concession as about 30 percent of her exports to USA are computer-related items especially semi-conductors. These now become zero-tariffed, backdated to April 5. Thailand annually exports to USA goods to the value of about US$60 billion, but the remaining 70 percent – mainly food, rubbers and precious stones – will continue to have 10 percent tariffs as announced at the beginning of this month.
Other Asian countries such as Vietnam and India, and Taiwan in particular, will also benefit from Trump’s concession on computer-related technology. If Trump had not intervened, the cost of mobile phones in America would have risen exponentially. For example, an iPhone 16 costing around US$1,200 would have risen to about US$2,150 or about 80 percent. Many economists believe that further international concessions from Trump will follow in an attempt to draw China into negotiations as his America First policies attract increasing opposition at home.
