Donald Trump's tariffs hit China, not smartphones: Finfluencer explains 'the real reason why'

The U.S. makes $50 in profit on every iPhone sold. China makes just $10. The remaining $40 goes to other global suppliers. That breakdown, according to Wisdom Hatch founder and finfluencer Akshat Shrivastava, is at the heart of why smartphones and electronics were spared from Donald Trump’s sweeping 125% tariff list — despite aggressive rhetoric and earlier threats. 

“This is the reason why: Trump excluded Smartphones and electronics from his 125% tariff list (after a lot of muscle flexing),” Shrivastava posted on X.

Shrivastava called the move a calculated decision driven by profit, not protectionism. “Everyone works for their own profits. There is a reason why: Capitalism wins,” he wrote, noting that preserving economic self-interest has become the new-age survival instinct. 

He believes the tariff carve-outs are likely to calm markets and potentially fuel a short-term rally. “People who missed the bus in terms of buying the last dip, might regret a little.”

Beyond the trade headlines, Shrivastava urged investors to rethink geographic concentration in their portfolios. “Being 100% invested in one country, one currency is a recipe for disaster now,” he warned, encouraging a more diversified allocation across U.S. equities, gold, Bitcoin, emerging markets, real estate, and even China. 

As for U.S. economic fears, he dismissed collapse talk, calling the U.S. a resilient economy with cards left to play. “Even if USD goes down in strength, the US will print more USD and export this ‘inflation’ to the world.”

The list of exempted products confirms the protection extended to critical tech categories. Smartphones (8517.13.00), flat panel displays (8524), solid-state storage devices (8523.51.00), semiconductors (8542), transistors, routers, chips, and other electronic components have been left off Trump’s retroactive tariff list, which kicks in April 5, 2025. The move, while market-positive, comes with a caveat.

White House deputy press secretary Kush Desai warned that these exemptions don’t mean Washington is softening. “President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops,” Desai said. “These companies are hustling to onshore their manufacturing in the United States as soon as possible.”