Donald Trump exempts phones, chips from new tariffs

What you need to know

• President Trump excluded smartphones, chips, and electronic parts as part of tariffs.
• He imposed 125% tariffs on products from China earlier this month, and China responded with retaliatory tariffs.
• This could mean there may not be a price hike on electronic devices.

According to new guidance from the U.S. Customs and Border Protection, smartphones and other electronic components will be exempt from U.S. President Donald Trump's tariffs.

Multiple sites, including CNBC and Bloomberg, reported the news.

Android Central's Jerry Hildenbrand explains how these tariffs aim to bring manufacturers back to the U.S. and that if phone prices go up, it might be a good reason to keep your existing phone.

However, if Trump decides that phones and other electronic parts are exempt from tariffs it means we may not see a price hike for these gadgets.

Earlier this month Trump imposed 125% tariffs on products from China, one of the main countries where many U.S. companies make most of their products. However, China didn't back down either— it levied retaliatory tariffs on the U.S. as well.

We saw a gist of the trade war impact the most recent OnePlus Watch 3, as its price went up from $330 to $500 just this week. While we don't know the reason behind this price hike, many suspect that these tariffs were at play.

This trade war has got several people on edge, as China manufactures not just smartphones but also several other electronic components. And to be able to produce them in the U.S. domestically would take several years. So this move comes as a relief for many.

CNBC reports that devices that will be part of the exclusion will be semiconductors, solar cells, flat panel TV displays, flash drives, memory cards, and solid-state drives used for storing data.