Trump Exempts 3C Tariffs, Apple-Related Stocks Surge! Beware of Trump's Reversal Amid Apple’s Moment in the Spotlight

TradingKey - The  U.S. government’s decision to exempt smartphones, computers, and other electronics from reciprocal tariffs may allow Apple (AAPL.US) to be the first major beneficiary of a reprieve from President Donald Trump's tariffs. Apple's after-hours stock price surged as much as 8%, while Apple-related sectors across China’s  A-share, Hong Kong, Taiwan, and South Korea also posted significant gains.

In early trading on Monday, April 14, Apple-related stocks rallied. In China’s A-share market, Luxshare Precision Industry and Goer Technology both hit their daily trading limit during the pre-market competitive bidding session. In Hong Kong, Q Technology rose 5%, while AAC Technologies and Sunny Optical Technology climbed more than 3%. Taiwan’s Hon Hai Precision Industry gained 4%, LG Electronics in South Korea rose 2%, and Advantest in Japan advanced over 1%.

The rally followed last Friday’s announcement from the U.S., which confirmed that consumer electronics would be temporarily excluded from tariffs. Before the exemption, markets had feared that elevated tariffs would severely disrupt Apple's supply chain, the majority of which is based in China, and potentially force the company to raise iPhone prices. With over 70% of iPhones manufactured in China, such a scenario would have put considerable pressure on Apple’s margins and global competitiveness.

Wall Street responded positively to the news. Dan Ives, an analyst at Wedbush Securities, called the tariff exemption for smartphones and chips a "dream scenario" for tech investors. Analysts at Evercore ISI echoed the sentiment, describing the move as "major relief" for Apple.

However, lingering uncertainty around U.S. trade policy continues to temper investor enthusiasm. U.S. Commerce Secretary Gina Raimondo indicated that the exemptions are temporary and warned that smartphones, computers, and other electronics may later fall under new, sector-specific tariffs, particularly those targeting semiconductors.

Trump stated on Sunday that there are no actual tariff exemptions, only reclassifications. He noted that future investigations into national security tariffs would focus on semiconductors and the broader electronics supply chain.

Reflecting these uncertainties, Apple’s after-hours stock gains retreated from an 8% high to below 5%. Similarly, Apple-related stocks in the A-share, Hong Kong, and Taiwan markets began to pare back their early gains during the first 30 minutes of Monday's trading session. Notably,  TSMC dipped 0.56%.