Investing.com -- Late Friday, the United States took a step that could be favorable for tech companies like Apple (NASDAQ:AAPL) by exempting certain electronics from the reciprocal tariffs previously imposed by President Donald Trump. The U.S. Customs and Border Protection (CBP) released a list late on Friday, detailing around 20 products that would no longer be subject to these tariffs. Items on the list include smartphones, computers, semiconductor-based transducers, solid-state storage devices, and flat panel displays.
This development comes as a potential relief for Apple, which has experienced a significant reduction in market value, losing nearly $500 billion since the onset of what President Trump termed 'liberation day' on April 2nd. The exemption of these electronics from tariffs could mitigate some of the financial pressures that the company has been facing.
In a move that underscores its commitment to domestic investment, Apple announced in February that it planned to spend $500 billion in the United States over the next four years.
The trade tensions between the U.S. and China escalated last week when the U.S. imposed a 145% tariff on Chinese goods, prompting China to retaliate with a 125% tariff on American products. These trade barriers have added to the strain on companies like Apple, which manufactures the majority of its iPhones—around 90%—in China.
The exemption of key electronic components from tariffs is likely to have a positive impact on Apple's operations, considering the company's significant manufacturing presence in China and the importance of these components to its core products. The CBP's announcement could provide some relief to the tech giant amid ongoing global trade uncertainties.
Wedbush analyst Dan Ives said tech investors have been dreaming about this news and can now breathe a sigh of relief.
"Big Tech firms like Apple, Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT) and the broader tech industry can breathe a huge sigh of relief this weekend into Monday," Ives stated. "A big step forward for US tech to get these exemptions and the most bullish news we could have heard this weekend...now onto the next step in negotiations on the broader China tariff war which will take a number of months at least."