The Trump administration announced that tariffs on smartphones, laptops, and other electronics, previously exempted on Friday, will be reinstated within a month or two. Commerce Secretary Howard Lutnick indicated that these tariffs would target the semiconductor industry and that certain products may receive exceptions. This follows the administration’s recent guidance that excluded these devices from new tariffs, including a significant additional levy on Chinese goods. Lutnick confirmed that products like iPhones, which are largely manufactured in China, will be affected. He emphasized the goal of encouraging domestic manufacturing, citing Panasonic’s new electric vehicle battery factory in Kansas as an example of reshoring efforts. The administration is expected to clarify the tariff rates on imported semiconductors soon.
In the first quarter of 2025, resellers in the United States rapidly acquired smartphone inventory ahead of expected tariff increases, leading to a five percent growth in the US smartphone sector. According to preliminary data from IDC, global smartphone sales rose one point five percent year-on-year, reaching three hundred four point nine million units. IDC Vice President Francisco Jeronimo noted that vendors accelerated production to mitigate potential cost increases due to tariff hikes. However, as tariffs were imposed, resellers may face challenges managing excess inventory. Counterpoint Research predicts that global smartphone sales will decline this year due to rising economic uncertainties, revising their forecast to reflect a slight year-on-year decrease in sales.
Why do we care?
Storytime and it’s a bit inside baseball. I have no idea how to cover tariffs on this show. I don’t want to do politics here, yet the keep intersecting technology in big ways. I don’t know what to advise listeners, because this story changes so often I can’t even analyze one trend. Let’s be honest—this isn’t just about trade policy, it’s about unpredictability as policy.
So what are customers to do? They, too can’t find a foothold.
You can’t offer clients certainty in a climate like this. What you can do is help them build strategies that assume volatility is permanent—where supply chain, procurement, and even infrastructure decisions are made with flexibility, localization, and optionality in mind.
This isn’t a matter of red vs. blue politics. It’s about recognizing that technology—especially hardware sourcing and silicon—has been dragged into a long-term policy chess match. For service providers, the risk isn’t in analyzing what tariff percentage hits which component. It’s in assuming that any decision based on stable global trade is still viable.
Short-term forecasting is dead. The story changes too often to base decisions on 12-month projections. Clients should optimize for responsiveness, not predictions. And you can help there.
