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Trump Backslides Again: Late-Notice Electronics Exemptions Favor Tech Giants, Leave Small Businesses in the Dust

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Introduction – A Retraction for the Rich

In an eleventh-hour reversal, the White House has issued a presidential memorandum quietly carving out tariff exemptions for a broad array of electronics, just days after the implementation of one of the most aggressive trade measures in U.S. history. The move—codified in the April 11, 2025 memorandum titled “Clarification of Exceptions Under Executive Order 14257”—was presented as a necessary correction to “avoid undue harm” to American interests. But let’s be honest: this isn’t about fairness. It’s about protecting the tech elite. Posted at (US Customs and Border Patrols website)

While billion-dollar corporations like Apple and Amazon breathe a sigh of relief, small and mid-sized businesses—already buckling under rising costs—get no such reprieve. This is trickle-down protectionism at its most transparent, and it reveals who this administration is truly working for.

The Policy: What Changed—And Who Benefits

Executive Order 14257, issued April 2, 2025, imposed a universal 10% tariff on all imports, with higher retaliatory rates for countries like China and Vietnam. Just three days after implementation, the administration backpedaled via a targeted exemption list. According to the memorandum:

“All products properly classified under HTSUS codes [such as] 8471, 8517.13.00, 8542… will be excluded from reciprocal tariffs.” (Clarification Memo, Apr. 11, 2025)

That list includes:

Smartphones

Laptops

Semiconductors and microchips

Servers

Computer monitors

Networking equipment

Click here to see a full detailed list of the exemptions

Computers, Components & Equipment

  • 8471 – Automatic data processing machines (computers) and units thereof (e.g., laptops, desktops, servers).
  • 8473.30 – Parts and accessories for machines of heading 8471, such as computer keyboards, mice, power supplies, etc.
  • 8486 – Machines and apparatus for manufacturing semiconductor devices or integrated circuits (e.g., lithography machines).

Telecommunications Equipment

  • 8517.13.00 – Smartphones and other portable telephones for cellular networks or other wireless networks.
  • 8517.62.00 – Machines for the reception, conversion, and transmission or regeneration of voice, images or other data (e.g., routers, modems, base stations).

Data Storage

  • 8523.51.00 – Solid-state non-volatile storage devices (e.g., flash memory, SSDs) for use with computers.
  • 8524 – Media for the recording of sound or other phenomena, such as software on discs or other digital storage.

Display Technology

  • 8528.52.00 – Monitors and projectors capable of directly connecting to automatic data processing machines, generally used for flat-panel displays like computer monitors.

Semiconductors & Diodes

  • 8541.10.00 – Diodes, other than light-emitting diodes.
  • 8541.21.00 – Photovoltaic cells, not assembled into modules or made up into panels.
  • 8541.29.00 – Other diodes, not elsewhere specified.
  • 8541.30.00 – Thyristors, diacs, triacs – types of semiconductor devices used in power control.
  • 8541.49.10 / .70 / .80 / .95 – Other semiconductor devices including LED chips and microelectronic modules, differentiated by structure or use.
  • 8541.51.00 – Gallium arsenide or similar compound semiconductors – typically used in high-frequency electronics.
  • 8541.59.00 – Other semiconductor devices, not specifically listed above.
  • 8541.90.00 – Parts of the semiconductor devices listed above.

Microelectronics & ICs

  • 8542 – Electronic integrated circuits and microassemblies – this includes CPUs, GPUs, memory chips, and other core components of computing devices.

These exemptions primarily cover the tech hardware backbone of the U.S. digital economy—from consumer electronics (phones, monitors) to core infrastructure (servers, semiconductors, and IC manufacturing tools). Their removal from tariff lists reflects economic pragmatism in shielding domestic industries and consumers from cost shocks while maintaining a hardline trade posture.

These aren’t niche items—they’re the foundational components of nearly every product and service offered by Big Tech. What’s missing? The rest of the economy.

Still Paying the Price: Small Businesses Left Out

The businesses now most at risk are those importing toys, textiles, tools, medical supplies, and furniture—sectors dominated not by global conglomerates but by family-run distributors, local retailers, construction firms, and independent healthcare providers.

The tariff exemptions explicitly leave out:

Hand tools and machinery for small-scale manufacturing

Housewares and appliances

Medical instruments and PPE

Apparel, footwear, and fabrics

Toys and hobby equipment

So, while the world’s richest corporations get exemptions on iPhones and GPUs, a children’s boutique importing cotton onesies from Vietnam or a bike repair shop sourcing tools from Taiwan must now choose between eating the cost or passing it on to consumers. And most can’t afford either.

A Pattern of Power Protection

This carve-out follows a Project 2025-aligned philosophy: economic nationalism that concentrates relief at the top while sacrificing the bottom. It reflects the same logic used to dismantle DEI programs, gut environmental regulations, and centralize federal control under the guise of “efficiency.” The memo’s timing—barely announced before the 10-day correction window closed—guaranteed that only those with insider access or elite legal teams could benefit.

“We were told this was about protecting American businesses,” said one importer from Colorado. “But if you’re not Fortune 500, you’re on your own.”

The Fallout Ahead

The repercussions are already rippling:

Supply chains are frozen for small-scale importers unsure whether they should cancel orders.

Consumer prices are spiking in sectors untouched by the memo.

Retaliation from China is expected to target American agriculture and manufacturing exports—industries that employ hundreds of thousands across red-state America.

And yet, the White House’s silence is deafening. No press briefing. No trade town halls. Just a PDF on the White House website and a shrug.

Conclusion: This Is Not Leadership

In the words of President Trump, these tariffs were “medicine” for the country. But what kind of medicine poisons the patient and then offers immunity to billionaires?

The April 11 memo is not a course correction—it’s a lifeline for the politically connected, issued under the cover of chaos, while leaving the rest of the economy to bear the burden. This isn’t about fixing trade. It’s about preserving power.

And the people paying the price aren’t in boardrooms. They’re in bakeries, workshops, family clinics, and storefronts across America.


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