Apple Inc. (AAPL) and Nvidia Corp. (NVDA) led a tech rally Monday following a pivotal policy shift from the Trump administration that exempts a wide swath of consumer electronics from sweeping tariffs on Chinese imports.
The move, announced late Friday, grants temporary relief to some of the U.S.'s largest tech companies and staves off what could have been a supply chain crisis reminiscent of the early pandemic era.
Key Apple products—iPhones, iPads, Macs, Apple Watches, and AirTags—will no longer face the 125% tariffs imposed on Chinese goods. A separate 10% baseline tariff on electronics from other nations was also scrapped. The exemptions cover more than $390 billion in U.S. imports, including roughly $101 billion from China, according to RAND estimates.
Apple surged 4% on Friday, reversing part of an 11% slide seen earlier this month amid tariff fears. Nvidia, which faces export limits on its AI chips to China, gained 3% amid optimism that semiconductor exemptions will protect its broader hardware ecosystem.
Evercore ISI’s Amit Daryanani called the development “a major relief for Apple,” noting that the tariffs would have sparked “material cost inflation.”
Market Calm After Tariff Whiplash
The broader market, which had been reeling from tit-for-tat trade war escalations, responded favorably to the exemption news. Major indexes staged a recovery to end one of the most volatile weeks since 2022. The S&P 500 recorded its best weekly performance in over a year despite continued pressure on bond yields and currency markets.
Still, the policy whiplash continues to sow uncertainty. Trump’s announcement of a 90-day pause on reciprocal tariffs lifted sentiment, only for investors to be rattled days later when the administration clarified that the total effective tariff rate on China now stands at 145%.
Despite the relief, analysts warn of a broader “sell America” trade brewing as foreign capital exits U.S. assets. Treasury yields spiked, the dollar weakened, and traditional safe havens failed to absorb demand—a signal, some say, of fading investor confidence in U.S. growth.
Michael Darda of Roth Capital called the policy environment “chaotic,” while Schwab’s Kathy Jones warned that both domestic and international investors are “concerned about the U.S. economic outlook.”
The Sectoral Tariff Threat Lingers
Though the exemptions provide near-term relief for Apple and Nvidia, the sector may not be out of the woods. The White House is preparing targeted “sectoral tariffs” on semiconductor-related goods, with potential levies on chips and the devices that use them. Analysts expect duties on AI-critical GPUs—particularly those not made in the U.S.—to follow.
While Nvidia’s China-specific H20 chip remains subject to export controls and limited in performance to comply with U.S. law, exemptions on equipment and components built in Taiwan and Mexico may allow the company to preserve supply chains for its AI infrastructure business. Still, with Morgan Stanley noting H20 margins are around 50%, far below Nvidia’s average in the 70s, pressure remains.
Apple, meanwhile, continues diversifying production beyond China. The company already manufactures 30 million iPhones annually in India and is expanding operations in Vietnam, Malaysia, and Thailand. But with nearly 87% of iPhones still made in China and 17% of Apple’s revenue coming from the Chinese market, the stakes are high.
Lobbyists from Apple and other tech giants had ramped up pressure in recent weeks, arguing that shifting final assembly to the U.S. is impractical given engineering and manufacturing constraints. The administration’s exemptions appear to reflect that reality—for now.
As Apple prepares to launch the iPhone 17, still largely built in China, any reversion to higher tariffs could disrupt pricing, margins, and market confidence. With further policy details expected Monday, investors and tech firms alike remain on edge.
Considering a $1,000 investment in these companies?
Our team at Stock Investor carefully curated a list of top stocks with the potential for significant returns, suitable for beginners and seasoned investors alike who are eager to learn a trade and unearth the best stocks to buy. Though not featured in this article, these selected stocks could be game-changers in the future.For those seeking dynamic trading experiences, consider joining our Swing Trade Alerts, Option Income Alert, or our Trading Room. Take advantage of our special offer today, starting at just $1 in the first month.
Unlock the secrets of Smart Money
Explore how billionaires and institutions are influencing the market. Follow their every move with DarkOption Flow and stay updated on essential market insights. Begin your journey to informed investing today!
Education
And if you're a fan of Invest opedia, you'll appreciate what we offer at SharperTrades even more. Explore our comprehensive option trading course and technical trading course, where you can learn trading, analyze stocks, delve into chart patterns for stocks, and gain invaluable insights for making the best company investments.
Unlock Your Stock Market Edge with SharperTrades. Dive into powerful trading tools, learn a trade, and receive expert guidance. Stay up-to-date with regular market updates. Learn trading, basics of investing, and how to pick the best stocks to buy. Whether you're a beginner or seasoned investor and trader, we've got you covered. Get started for free, today!