Cryptocurrency Market Recovers Slightly as Trump Excludes Smartphones, Laptops

In the latest round of Trump's trade war that has left economists around the world holding their breath, the United States announced updated guidelines on Friday for reciprocal tariff exemptions for specific technology devices, such as laptops, smartphones, and machinery necessary for semiconductor production. The new customs guidelines exclude a range of electronic devices, including laptops, semiconductors, solar panels, flat screens, flash drives, memory cards, and solid-state drives. However, while these products are currently exempt, future taxes may still apply. The Chinese Ministry of Commerce called these exemptions "a small step by the United States towards correcting the erroneous approach of unilateral 'reciprocal tariffs'" and added that Beijing is still assessing its impact. The ministry has taken this opportunity to reiterate its strong criticism of the United States' tariffs, emphasizing that Washington is "seriously undermining the international economic and trade order" and "harming others without benefiting itself." The ministry also called on the United States: "Take significant steps towards adjustment, completely abandon the mistaken 'reciprocal tariff' and return to the right path of mutual respect and resolving disagreements through equal dialogue." Tariffs of 145% have a particularly severe impact on technology companies like Apple. This exemption provides temporary relief for companies like Apple, which manufactures over 90% of its products in China, including iPads and Mac computers. Without these exemptions, Apple could be forced to raise the price of iPhones sold in the U.S. by up to 85% to maintain profit margins. The company has taken urgent measures by chartering flights to transport millions of iPhones from India to the United States, in order to mitigate the impact of potential tariffs. The Economic Times of India has written: "Apple's relationship with China, where nine out of ten iPhones are produced, has turned Donald Trump's so-called "Liberation Day" into six days of hell for this tech company." Despite the rising prices, Apple still faces a difficult road ahead. Despite efforts to diversify production to countries like India and Vietnam, Apple still relies on China's long-established ecosystem. Rebuilding the complex supply chain elsewhere could take decades, and manufacturing iPhones entirely in the United States is not feasible due to labor shortages and costs. The memes circulating on social media are very interesting but highlight the reality that America's reindustrialization cannot happen overnight. Critics of Trump remain unreserved in their comments, including Ed Krassenstein, a political commentator and founder of KrassenCast, who said: "At this point, it's almost funny. Trump actually said there would be no 'exemptions' for his reciprocal tariffs and MAGA cheered... Now, suddenly he goes back and adds a series of exemptions to his reciprocal tariffs. And MAGA cheers once again." Political commentator Keith Olbermann posted: "Trump: Tariffs are perfect, beautiful, and mandatory, and I will not back down. Also, Trump: this is 37,498 tax exemptions for companies that have greased the wheels for me." Meanwhile, the cryptocurrency market reacted positively to this news, with Bitcoin reaching $86,000 for the first time since 'Liberation Day' on April 2. It might be worth getting popcorn ready as we prepare for a new week. The next round of tariffs is about to take place.