Apple, Nvidia, Dell, Taiwan Semiconductor, Super Micro Computer and other technology product makers won a huge exemption from President Donald Trump's "reciprocal" tariffs. That could be good news for tech stocks and the broader market on Monday.
But a top Trump official said the reprieve is temporary.
Smartphones, laptops, PCs, servers, memory chips, flat-panel displays, solar cells and hard drives are exempt from the additional 125% tariff on Chinese goods and 10% baseline levy on imports from other countries, the U.S. Customs and Border Protection announced late Friday. The electronics products still face a 20% tariff on Chinese goods imposed earlier this year.
It was the latest sign that President Trump is bending to market and political backlash over his high tariffs. On Wednesday, Trump paused most of the so-called reciprocal tariffs that took effect hours earlier. The 10% baseline tariff remained while he hiked tariffs on Chinese goods to 145%.
The electronics exemptions cover some $385 billion worth of 2024 imports, some 12% of the total. That includes $100 billion from China, or 23% of 2024 imports. The average tariff on electronics plunged from 45% to 5%.
Tariff Reprieve Temporary
However, Commerce Secretary Howard Lutnick told ABC News on Sunday that the reprieve is temporary, with the electronics exemptions only on the "reciprocal" tariffs. Trump will soon impose sector tariffs on electronics and semiconductors in a about a month, Lutnick added.
On Saturday, Wedbush analyst Dan Ives said the Trump tariff exemptions were "the best news possible for tech investors." Following Lutnick's comments, Ives says the tech exemptions are still a "massive win" but his enthusiasm was tempered.
"The mass confusion created by this constant news flow out of the White House is dizzying for the industry and investors and creating massive uncertainty and chaos for companies trying to plan their supply chain, inventory, and demand," Ives wrote Sunday.
Adding to the confusion, Fox Business' Charles Gasparino, posting on X, reported "significant division" within the White House about Lutnick's comments.
In recent weeks, Lutnick had suggested that Apple iPhone assembly could happen in the U.S. Most analysts say that would mean a vastly higher price and take years to develop. Just shifting iPhone assembly to India and other countries is a lengthy process.
Apple iPhone production in India did jump 60% in the 12 months ended in March vs. the prior year, Bloomberg reported Saturday, citing sources. The Dow tech giant now makes about one-fifth of its iPhones in India.
There had been growing speculation late last week that Apple would get a tariff exemption. Trump had exempted the iPhone from China tariffs in his first term.
Apple Stock, Nvidia
Apple stock jumped 5.2% last week to 198.15, reversing higher from an 11-month low of 169.21 on Monday.
Nvidia stock vaulted 17.6% last week, also reversing from an 11-month low. The Trump administration last week let Nvidia continue to sell H20 AI chips to China after mulling tougher restrictions.
Taiwan Semiconductor stock rallied 7%, buoyed by strong Q1 sales. TSMC, which makes chips for Nvidia, Apple and many others, will report Q1 earnings on Thursday.
Dell stock gained 14.4% last week while Supermicro stock leaped 11.2%. Hewlett Packard Enterprise gained 10.6%.
Best Buy fell 1 cent last week to 60.43, hitting a five-year low. The consumer electronics chain should greatly benefit from the Trump tariff exemptions.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
