After Donald Trump entered the White House as the 47th President of the United States, he followed the same footprint as his first term and ignited a trade war with China. This time, the trade war was primarily focused on tariffs, with Trump increasing tariffs on China to a whopping 145 percent—and 245 percent for some specific products.
As the dust settles on the US-China tariff war and a 90-day ceasefire has been reached, the toll of the conflict becomes increasingly apparent. A recent Bloomberg report reveals that China's smartphone exports to the US have hit their lowest point since 2011, a concerning trend given China's role as the primary production hub for US tech giants like Apple and Google.
US Customs data shows that China's overall exports to the US have dropped by 21 percent. Last month, smartphone exports to the US from China plummeted by 72 percent, reaching under $700 million.
In 2024, the top three US imports from China were smartphones, laptops, and lithium-ion batteries, which highlights the massive impact of tech on China and US bilateral trade. On the other hand, while the US imports a huge chunk of its electronics from China, China's top imports from the US are liquid petroleum gas, oil, soybeans, gas turbines, and machines to make semiconductors.
The United States and China recently agreed to slash reciprocal tariffs for 90 days. While the trade war is temporarily settled, the war of words will not end. Chinese officials have accused the Trump administration of undermining recent trade deals by imposing more sanctions and restrictions on Huawei and chip exports to China.
In the meantime, while China's smartphone exports to the US hit a 14-year low, China's General Administration of Customs data shows that the value of phone component exports to India from China roughly quadrupled over the past year.
Apple has moved iPhone production from China to India to minimize the impact of tariffs. Meanwhile, Trump recently said he was unhappy with Apple's decision and discussed the matter with CEO Tim Cook.
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