Trump’s latest stunner takes Apple off the hook as phones, other electronics get a tariff exemption
Had Trump not decided on these exemptions, Apple would have had to decide whether to pay all of the tariffs and keep prices unchanged, pay a portion of the tariffs and pass the rest on to consumers in the form of higher prices, or pass on to consumers all of the import tax which would have led to the most shocking price hikes. Some analysts were calling for iPhone prices in the U.S. to double or even triple once previously imported inventory from China ran out.
Another pair of winners would be Dutch chipmaking equipment maker ASML and TSMC, the world’s largest chip foundry. Among the products exempted from the new tariffs is equipment used to make semiconductors which also would include the lithography machines made by ASML and purchased by firms like TSMC.
While the tech companies shipping devices into the U.S. are benefiting from the latest big tariff news, U.S. consumers might be the biggest beneficiary since it will allow them to continue to purchase the products they love without having to potentially shell out more money. Unless some other blockbuster news comes out before Monday’s opening bell next week, stockholders of Apple will probably see the stock continue to rebound after it closed Friday’s regular trading session at $198.15, up 4.06% or $7.73.
The tariff exemptions might be short-lived as a report says that it is a sign of an impending change in tariff amounts for those products being excluded which would include a lower import tax for Chinese goods imported into the U.S. All we can do is continue to monitor the situation and report any changes to you.
