U.S. markets are in the green to start the trading week on April 14 after President Donald Trump announced that he’s granting a tariff exemption to smartphones, computers, and microchips.
News that Trump is exempting many technological devices and electronic components from reciprocal tariffs has stocks of companies such as Apple (AAPL) and Nvidia (NVDA) trading sharply higher.
The exemption comes after Trump imposed 145% tariffs on most imports from China, a move that threatened companies such as Apple, which makes its iPhones in the Asian nation.
The new guidance also includes electronics such as semiconductors, solar cells, flat panel televisions, flash drives, and memory cards.
The Trump administration said the exemptions were made to give U.S. companies time to move their manufacturing to the U.S.
However, Trump’s latest move on tariffs seemed to shift again over the weekend, with the president saying on April 13 that the exemption is temporary and he is planning new import duties on technology products.
At the same time, China announced that it has suspended exports of certain rare earth minerals and magnets that are critical for making cars and semiconductors.
Additionally, senior members of the Trump administration went on the Sunday talk shows to emphasize that a 20% tariff on all Chinese goods remains in effect.
Still, investors are bidding up stocks of technology companies on news that at least some tariffs have been reduced on electronics made in China.
Since Trump announced his reciprocal tariffs on more than 100 countries on April 2, Apple has lost more than $600 billion U.S. in market value.
Over the past 12 months, Apple’s stock has declined 19% to trade at $198.15 U.S. per share.