US Trade Representative Michael Froman announced the move against the International Trade Commission in a letter, saying he decided to "disapprove" the exclusion order.
It is the first time since 1987 that a US presidential administration had vetoed a product ban ordered by the commission.
In June, the commission said it issued a "limited exclusion order" for certain devices made by Apple, in a victory for the South Korean firm after a huge loss in a court fight with its US rival last year.
After extensive consultations, "I have decided to disapprove the USITC's determination to issue an exclusion order and cease and desist order in this investigation," Froman wrote in the letter, addressed to USITC chairman Irving Williamson.
"This decision is based on my review of the various policy considerations discussed above as they relate to the effect on competitive conditions in the US economy and the effect on US consumers.
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