Apple Inc (NASDAQ:AAPL) shares are rising Monday morning after the Trump administration announced tariff exemptions for smartphones.
What To Know: After markets closed on Friday, President Donald Trump exempted smartphones, computers and other electronics from the reciprocal tariffs that went into effect last week, per Reuters.
Several tech stocks are moving higher Monday morning, including Apple, which largely relies on imported products from China.
The announcement came via notice from the U.S. Customs and Border Protection agency, which published a list of 20 tariff codes to be exempted from tariffs on imports. The report indicates that tariff exemptions span smartphones, computers, laptops and disk drives, as well as semiconductors and memory chips.
The tariff exemptions apply retroactively as of April 5 and include Trump’s 125% reciprocal tariffs on China as well as the 10% baseline tariffs on other countries like India, where Apple produces a large portion of its iPhones, and has increased production in recent weeks in response to tariffs.
According to the U.S. Census Bureau, smartphones were the most imported product to the U.S. from China last year.
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Wedbush analyst Dan Ives shared a new note on X Monday morning suggesting that Apple will ramp up its focus on India production amid the ongoing trade war with China. He believes the exemptions give the company some “breathing room” to plan ahead.
“Overall, we view the dizzying weekend tariff news as a step forward net positive for Apple as well as other tech names as it gives some flexibility and allows for China negotiations to hopefully take place in the coming months,” Ives said.
“We remain bullish on the long-term opportunity for Apple’s flagship ecosystem and focus on its 1.5 billion iPhone and 2.4 billion iOS installed base and massive Services business for downside protection in this very nervous backdrop for tech investors.”
Needham analyst Laura Martin also reiterated Apple with a Buy rating on Monday and maintained a price target of $225. The positive analyst reactions appear to be helping lift shares Monday morning.
AAPL Price Action: Apple shares were up 6.26% at $210.56 at the time of publication Monday, according to Benzinga Pro.
Photo: courtesy of Apple.
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