Apple tariff exemption: Apple and NVIDIA increase when Trump frees smartphones, computers and electronics; will stocks rise after moving?
The announcement has risen to 145% after the tensions came weeks after Trump announced a 34% tariff on Chinese goods on April 2. With these exemptions, consumers may avoid rising equipment prices that many economists warn of.
Why is this exemption a major victory for Apple and NVIDIA?
Apple and Nvidia have produced a large portion of their products in China and then sent them back to the United States with tariffs of up to 145%, and the cost of doing business has risen sharply. For Apple, this means potential prices have risen by iPhones, iPads and MacBooks, and consumers will certainly feel it in their wallets.
Under customs and border protection, the exemption will apply to smartphones, laptops, computers and specific semiconductor chips. This includes key components used by both Apple and Nvidia. Economists warn that if tariffs on electronic products are retained, fees could be transferred to U.S. consumers.
Shortly after Trump’s April 2 tariff announcement, Apple’s stock soared 23%. But as hopes of exemption grow, stocks begin to rebound. NVIDIA has also initially fully restored, another sign that investors regard this exemption as a green light.
Can Apple’s stocks gather again after the tariff break?
Very likely. Apple’s stock is frank after tariff news broke earlier this month. However, with a new exemption, it began to return to its original state. Investors have shown signs of reconfidence. Apple has a lot of riding in China. The company’s supply chain relies on Chinese factories. Without this waiver, the price of new iPhones and MacBooks could rise dramatically, affecting sales and profitability. So far, Apple’s chief operating officer Tim Cook has remained silent about the trade war. When he attended Trump’s inauguration in January 2017 and expressed his willingness to work with the administration, he did not comment on how these latest tariffs directly affected Apple. Still, Wall Street sees this tariff exemption as a much-needed rest the company needs.
How do these exemptions affect the broader U.S.-China trade struggle?
The tariff war between the United States and China is part of Trump’s broader plan to narrow the U.S. trade deficit. In 2023, the United States imported $436 billion worth of goods from China, while exporting only $154 billion. China remains the second largest exporter of the United States after Mexico.
To cope with the imbalance, Trump has proposed several rounds of tariffs. In addition to the 145% tariff on certain Chinese imports, almost all global imports are liable for 10%, while global import taxes also have 25% steel and aluminum taxes.
The White House believes these steps are necessary to bring back U.S. manufacturing jobs. But critics and even some economists – they may harm consumers much more than they can help American industry.
The prices of electronic products, smartphones, computers and gaming devices may rise significantly without exemptions. That’s why this exemption is seen as a strategic victory, not only for Apple and NVIDIA, but also for U.S. consumers.
What is the next step in the technology market?
As the trade war continues, the market may continue to focus on Trump’s next industry goals, or choose which industries to choose to use. Currently, Apple and Nvidia can breathe a sigh of relief, and technology investors may feel more confident again.
But it’s still a high-risk game. The 145% tariff still applies to a wide range of Chinese products, and it is not clear whether there will be more exemptions.
Prior to this, this latest move could help stabilize the market and provide U.S. technology companies with temporary shields that rely heavily on Chinese production lines.
FAQ:
Why do Apple and NVIDIA benefit from Trump’s tariff exemption?
Because smartphones, computers and key chips are excluded from Chinese tariffs.
Which products are exempt from 145% Chinese tariffs?
Smartphones, laptops and electronic chips are excluded.
