The Tech Supply Chain Has Already Been Roiled by Tariffs, New Census Data Reveal

An employee testing the camera quality of mobile phones at Foxconn Technology, in Sri City, India. Foxconn is the primary manufacturer of iPhones. (Karen Dias/Bloomberg)

New May data show a dramatic shift in tech device imports away from China, as the structure of the 2025 tariffs make assembly in other countries more attractive.

China accounted for just 8% of U.S. smartphone imports in May, according to new data from the U.S. Census Bureau, down from 67% in May 2024. As recently as February, a majority of U.S. smartphone imports came from China.

U.S. importers currently pay a 20% tax on smartphones, PCs, and parts from China. For now, those levies are zero from the rest of the world, giving companies a strong incentive to move their exports to the U.S. away from China.

The Trump administration is adding new tariffs back on various countries, though exemptions for certain tech products remain in place. Companies have quickly adjusted but new sectoral tariffs or country-specific levies could rapidly undo the May changes.

For now, the shift away from China has benefited India, where Apple has spent years building up iPhone assembly, and Vietnam where Samsung has done the same. India was the No. 1 smartphone exporter to the U.S. in May, with Vietnam a close No. 2.

Created with Highcharts 9.0.1U.S. smartphone imports from China plunged in May, with India and Vietnam picking​up some of the slack.Source of U.S. smartphone importsSource: U.S. Census Bureau

Created with Highcharts 9.0.1ChinaIndia and VietnamJanuary 2023February 2024May 2025020406080100%

U.S. businesses tried to get ahead of tariffs in the first quarter, with smartphone imports up 72% from the year before. But a “pull-forward” of demand means that smartphone shipments to the U.S. subsequently declined, down 29% in May. Total Chinese smartphone exports to the U.S. fell by $2.6 billion in May, only partially made up for by India and Vietnam.

The dynamics look somewhat similar in the PC and PC-parts market, where a winter pull-forward led to U.S. import declines in April and May. Vietnam and Thailand picked up the slack for falling Chinese assembly, with their PC and parts exports to the U.S. up 59% and 49%, respectively, in May.

PC and parts exports from China to the U.S. fell 82% in May from the year before. While China was the No. 1 exporter of PCs and parts to the U.S. as late as February, it’s now in third place, with 11%.

The rapid shifts in the supply chain are likely a preview of what’s to come. In April, the Trump administration exempted lots of tech products from the highest tariffs, but warned of additional sector-specific tariffs later this year.

One area where tech supply chains have seen little movement is in the red-hot area of servers and related parts. Most of those products have long come from Taiwan and Mexico. They remained the leading exporters of those products to the U.S. in May.

Write to Adam Levine at adam.levine@barrons.com