Smartphones, Routers & Co.: Who can breathe a sigh of relief with the new exceptions to the 'US reciprocal tariffs' – and who cannot

Which Products Are Covered by the Exception – and Which Are Not

With retroactive effect from April 5, 2025, new exceptions for so-called Reciprocal Tariffs will come into force in the USA by April 11, 2025. These exceptions primarily affect products with semiconductor technology – including electronic communication devices under heading 8517.

However: There is an important exception for certain goods under heading 8517.

Those who export smartphones or network devices to the USA can breathe a sigh of relief – at least partially. According to CBP Announcement CSMS #64724565, some subheadings are explicitly exempted from tariffs. But beware: The exception rule is narrowly defined. A correct customs classification is crucial.

These subheadings under heading 8517 are exempt from US tariffs:

• 8517.13.00 – Smartphones

• 8517.62.00 – Devices for data transmission in networks (e.g., routers, modems, repeaters)

This covers classic communication devices that independently send and receive data or voice – either via cellular networks or within a LAN/WAN.

But not everything that is “connected” is also exempt!

Many products perform technically similar functions – but are not classified under 8517 in customs tariffs. According to the General Rules 1 & 6 of the Harmonized System and the HS explanatory notes to heading 8517, for example, the following are excluded:

Accessories & Parts:

• Microphones, speakers → 8518

• Bells, buzzers, displays → 8531

• Cables & plugs → 8544

• Touchscreens or displays → 8524 / 8528

Other Types of Devices:

• Other mobile phones (not smartphones!) → 8517.14

• Smartwatches without their own mobile function → 9102

• Passive optical splitters & passive components without transmission function → 9013

• Devices with purely measurement or control function → e.g., chapter 90 or also heading 8537

These products are not covered by the customs exemption – even if they are smart or equipped with wireless technology.

The Key to Demarcation

The Main Function

The classification under head. 8517, particularly in the subheading, largely depends on what core function the product fulfills:

✔ Are communication (voice/data) and functions to receive, convert, and transmit or regenerate sounds, images, or other data characteristic for the device?

✔ Can the device send or receive autonomously – not just as part of a system?

✔ Is there no other dominant or defining function (e.g., control, measurement, navigation)?

Only if these points are fulfilled does the exception from tariffs apply.

Example: A smartwatch that can display notifications but does not make or receive calls does not fall under 8517.62.00 – and is not exempt from reciprocal US tariffs.

Conclusion & Recommendation

Those who export communication devices or accessories to the USA should now pay close attention. The new customs regulations are an opportunity for correctly classified products – but also a risk in borderline cases or unclear product descriptions.

Our Recommendation:

• Check product data

• Validate customs tariff numbers

• Highlight communication as the main function

In the end, the correct customs tariff number matters – not the marketing label.