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Takeaways from the Key Takeaways
- Tech stocks rose Monday after President Donald Trump exempted computers, smartphones, and other consumer electronic products from tariffs.
- JPMorgan analysts said the exemption would be "a big relief" for Apple, which makes most of its devices in China.
- Apple shares, as well laptop maker Dell, rose following the temporary reprieve from tariffs.
Apple (AAPL), Dell Technologies(DELL), as well as other tech stocks, gained Monday after President Donald Trump imposed a pause in import tariffs for many electronic goods.
Smartphones, computers, and semiconductors have been exempted from Trump’s “reciprocal” tariffs, according to updated guidance from the U.S. Customs and Border Protection Friday, although Commerce Secretary Howard Lutnick on Sunday suggested the carve-out would be temporary.
JPMorgan analysts said the exemption would be "a big relief" for Apple, which makes most of its devices in China. They said they expect Apple "to significantly accelerate its diversification plans, including an initial focus on the assembly footprint." India now makes up around 15% of iPhone production, with Vietnam representing "a significant manufacturing center for Airpods and Watch, while still ramping on iPads and Macs," they said.
Apple shares added about 2% Monday, extending Friday's gains. They have lost almost a fifth of the value they had so far in this year.
Dell, a laptop maker that makes the majority of its products outside of the U.S.A., saw its share price rise 4% on Monday. JPMorgan analysts stated in a separate note about retailer Best Buy (BBY) that they believed the pause of consumer electronics tariffs is “a clear indication of importance of products for the US consumer” and the weight large US companies such as Dell, Apple, etc.
Shares of several semiconductor companies, including Advanced Micro Devices(AMD), Western Digital(WDC), and NXP Semiconductors(NXPI), also gained. (Read Investopedia’s live coverage of today’s market action here.)
UPDATE—April 14, 2025: This article has been updated since it was first published to reflect more recent share price values.
