China’s smartphone exports to the United States fell by 72% in April, totaling just under US$700 million, according to customs data released on May 20, 2025.

This figure represents the lowest export level since 2011 and reflects the effects of US tariffs on Chinese goods.

The decline in smartphone exports is significantly greater than the overall 21% decrease in China’s shipments to the US last month.

Tariff measures from the Trump administration, which included levies as high as 145% on certain Chinese products, have influenced technology supply chains and prompted production shifts to other regions.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Supply chain diversification accelerates amid tariff uncertainty

The dramatic 72% drop in smartphone exports from China to the US represents the culmination of a years-long trend toward supply chain diversification that began during the initial Trump-era tariffs.

This pattern was already visible in 2019 when China’s share of US mobile phone imports fell from 75-80% to below 60% as manufacturers began shifting production to alternative locations1.

Vietnam emerged as the primary beneficiary of this shift, significantly increasing its mobile phone exports to the US as companies sought to mitigate tariff risks1.

Apple, which relies heavily on Chinese manufacturing through partners like Foxconn, exemplifies the vulnerability that has driven tech companies to pursue multi-country production strategies despite the significant costs and complexities involved1.

The restructuring of these supply chains represents a shift in global manufacturing patterns, as companies prioritize resilience over the efficiency that concentrated Chinese production once offered.

2️⃣ Tariffs create cascading economic effects beyond direct trade figures

The smartphone export collapse highlights how tariffs impact economies far beyond their immediate targets, with projected household costs of $800-1,190 annually due to price increases across technology products2.

These tariffs are expected to reduce long-run US GDP by 0.9%, while decreasing after-tax incomes by 1.2% on average, with lower-income households bearing a disproportionate burden3.

The effective tariff rate is projected to rise to 12.1%, the highest since 1941, creating economic friction that ripples through both economies3.