In a significant concession amid ongoing tensions with China, the Trump administration has decided to exempt smartphones, computers, and other electronics from recent tariffs. Commerce Secretary Howard Lutnick clarified that these tariff exemptions are temporary. This move has been interpreted as a significant retreat in the trade war, with many in the tech industry, including giants like Apple and Nvidia, breathing a sigh of relief. While the exemptions are seen as a positive step, they come as the U.S. is preparing to implement new tariffs on semiconductors in the near future. China has responded by deeming this exemption a small step towards rectifying what they consider a mistake in the U.S. tariff strategy.