President Trump has announced that numerous electronic devices, including virtual reality (VR) headsets, will now be exempt from his “reciprocal” tariffs.
This new exemption, implemented through an executive order last night, affects a broad array of US Harmonized Tariff Schedule (HTS) categories related to electronics, such as smartphones, tablets, laptops, and others. Previously, semiconductor chips had already been granted exemption from tariffs.
Among the newly exempted classifications is 8528.52.00, which pertains to “Monitors and projectors that do not include television reception apparatus; designed for direct connection to and tailored for use with an automatic data processing machine.” According to a formal US customs ruling and insider information regarding the importation of VR headsets to the US, this code is applicable to VR headsets.
This exemption indicates that VR headsets will not face Trump’s additional 125% tariff on products manufactured in China, nor the 10% tariff on imports from countries like Vietnam, which took effect on Wednesday. These exemptions apply retroactively, and as most headsets are produced in these two nations, this is significant news for the industry.
Initially announced at the start of the month, the “reciprocal” tariffs were slated to be 34% for China and 46% for Vietnam. Trump had also previously initiated a 20% tariff on Chinese imports in recent months, raising the total rate for China to 54%.
However, when the tariffs were set to be enacted on April 9, Trump revealed that he would cap the rates for most countries at 10% for 90 days, with the exception of China, which would see a minimum tariff of 145%. Had these rates remained, it could have pushed Meta to only manufacture the Quest in Vietnam, and other headset manufacturers might have had to increase their prices.
Fortunately, these worries may now be alleviated.
Electronics produced in China, including VR headsets, will still incur the 20% tariff that Trump previously imposed, but they are exempt from the subsequent “reciprocal” tariffs that came into effect on Wednesday.
Thus, unless there is an unexpected reversal in the president’s decision, the retail prices for headsets in the US should avoid rising—providing some comfort for the industry as a whole.