As President Donald Trump has pushed tariffs on China to 145%, the administration announced it will not collect duties on certain electronics.

According to guidance released by Customs and Border Protection, smartphones, computers, and certain chips will be exempt from the tariffs on products from China.

This exemption is a major boost to companies such as Apple and Nvidia, which manufacture a significant percentage of their products in China and import them into the U.S.

After President Trump announced significant tariffs on China on April 2, Apple's stock plunged by 23% in the days that followed. However, even as President Trump continued to escalate the trade war with China this week, Apple's stock regained some value amid speculation about whether the administration would exempt Apple.

RELATED STORY | Tariffs: The potential positive impact on your finances

Nvidia's stock also experienced a similar drop after President Trump's April 2 announcement but has since fully recovered.

Economists have indicated that the cost of tariffs is likely to be passed along to consumers. Had President Trump not exempted these products, consumers purchasing iPhones and Apple computers would likely have faced significantly higher prices.

Since President Trump announced a 34% tariff on Chinese goods on April 2, he has added additional tariffs, raising the effective tariff rate to 145%.

President Trump has sought to reduce the trade deficit that the U.S. has with China and other nations through these tariffs. In 2023, the United States imported $436 billion in goods from China while exporting $154 billion to China. China is the third-largest importer of U.S. goods, according to the Observatory of Economic Complexity, and is also the second-largest exporter of goods to the U.S., just behind Mexico.

The White House has claimed that the trade imbalance has resulted in a loss of U.S. manufacturing jobs.

The tariffs on goods from China are in addition to a 10% duty on nearly all imports worldwide and a global 25% tax on steel and aluminum imports.

Apple Chief Operating Officer Tim Cook has not publicly discussed the trade war, which could pose major challenges for his company.

Cook attended President Trump’s inauguration on January 20 and expressed at that time his eagerness to work with the incoming administration.