Tech enthusiasts can breathe a sigh of relief following the recent announcement from Donald Trump’s administration regarding tariff exemptions. The administration has declared that smartphones, computers, and various electronic products will not be subjected to tariffs, including the significant 145% tariff on imports from China—an issue that had raised serious concerns among consumers and tech advocates alike.

Initially, many worried that Trump’s tariffs could dramatically increase the prices of popular gadgets, with some estimates suggesting that iPhones could potentially triple in cost. However, the latest decision to exempt certain tech products from tariffs brings some comfort to consumers who rely on these devices.

The reasoning behind the tariffs stems from a desire to restore manufacturing jobs to the U.S. and address what Trump perceives as unfair trade practices in the global market. The implementation of import tariffs varies, with a base rate of 10% for most countries and a sharp 145% on imports from China.

This latter figure was prompted by China’s own plans to retaliate with an 84% tariff on U.S. goods. Following negotiations, the U.S. also rolled back previously planned tariffs, providing a temporary pause for many countries.

The latest exemption announcement from the U.S. Customs and Border Patrol is a significant win for the technology sector, which heavily relies on Chinese manufacturing. Instead of selectively exempting companies based on subjective criteria, the administration has chosen to allow entire sectors to benefit from these exemptions retroactively from April 5.

This approach has been positively received by tech analysts, describing it as a “game-changer.” Importantly, the exemptions are intended to be temporary, allowing companies time to shift production back to the United States.

The White House has stated that reliance on China for critical technology manufacturing must be reduced, and initiatives are already underway for companies to expedite this transition. While there remains a 20% tariff targeting specific issues, companies are already seeking to diversify their production chains, with countries like India and Vietnam emerging as viable alternatives.