Trump Exempts Electronics, Including Headsets, From The "Reciprocal" Tariffs

US President Trump has now exempted many electronic devices, including VR headsets, from his "reciprocal" tariffs.

Enacted by executive order last night, the new exemptions apply to a wide range of US HTS (Harmonized Tariff Schedule) covering electronics like smartphones, tablets, laptops, and more. Semiconductor chips were already exempted.

One such newly exempted code is 8528.52.00, “Monitors and projectors, not incorporating television reception apparatus; capable of directly connecting to and designed for use with an automatic data processing machine.” According to an official US customs ruling, and sources familiar with importing VR headsets to the US, this code applies to VR headsets.

Will Trump’s Tariffs Drive Up VR Headset Prices?

With a 54% tariff set to apply to Chinese-made goods and 46% for Vietnam, will the price of VR headsets in the US soon increase?

UploadVRDavid Heaney

This means VR headsets won't be subjected to Trump's 125% additional tariff on imports from China nor the 10% tariff for countries like Vietnam, rates which kicked in on Wednesday, and the exemptions are retroactive too. Most headsets are made in these two countries.

When first announced at the start of the month, the "reciprocal" tariffs were set to be 34% for China and 46% for Vietnam, and Trump had already enacted a 20% tariff on Chinese imports in recent months, which would have brought the total for China to 54%.

However, when the April 9 date on which the tariffs were set to kick in arrived, Trump announced he would limit the rate for countries to 10% for 90 days, except for China, which would see a 145% minimum rate. Had this held, it likely would have seen Meta produce Quest in Vietnam only, while some other headset companies would have been forced to raise prices.

Now, these concerns no longer apply.

Meta Moving Some Quest Production To Vietnam To Mitigate China Tariffs

Meta is moving up to half of Quest production to Vietnam as a hedge against a possible trade war between the US and China.

UploadVRDavid Heaney

Electronics that are made in China, including headsets, will still be subject to the 20% tariff Trump imposed earlier in the year, but are now exempt from the later "reciprocal" tariffs that kicked in on Wednesday.

As such, barring an unexpected change in the US president's mind, headset prices in the US should no longer be forced to increase - a sigh of relief for the industry.