Global tech stocks saw a strong rebound on Monday after the U.S. government announced a surprising move to exempt smartphones, laptops, and several computer components from its latest wave of tariffs on Chinese imports. This unexpected break has temporarily eased fears of rising electronics prices and supply chain disruptions that have rocked the tech industry in recent weeks.
The tariff relief comes at a time when Big Tech companies were under pressure due to escalating trade tensions between the U.S. and China. In recent weeks, retaliatory tariffs from both sides had sparked worries about higher costs for components, reduced consumer demand, and a repeat of the severe supply chain chaos experienced during the COVID-19 pandemic.
Monday’s rally reflected a sigh of relief across global markets. Apple led the charge with a 3.5% gain, bouncing back after a 9.1% drop over the past two weeks. Industry experts had warned that if the iPhone, primarily assembled in China, remained subject to high tariffs, significant price increases were inevitable for U.S. consumers.
Other tech giants also benefited. Dell Technologies surged nearly 6%, HP gained 3.5%, and Nvidia rose 1.5% amid renewed optimism across the semiconductor sector. European chipmakers with strong ties to the U.S. market, such as ASM International and Infineon, also recorded gains of up to 3.2%.
Asian suppliers were not left out. Taiwan’s Foxconn, the world’s largest iPhone manufacturer, rose as much as 7.8% before closing 3% higher. Quanta and Inventec, both major hardware suppliers, also posted impressive gains.
The White House confirmed that the exemption applies to 20 categories of electronics, including computers, memory chips, flat-panel displays, and other essential components. While this move offers short-term relief, analysts caution that it might only be temporary.
President Trump, known for his unpredictable trade policies, announced on Sunday that new tariffs targeting imported semiconductors are expected in the coming days. This is part of his broader strategy to reduce U.S. reliance on Chinese manufacturing and encourage tech production within American borders.
According to Angelo Zino, a senior equity analyst at CFRA Research, this temporary drop in tariff rates—from a previous 145% to 20%—may prompt companies to quickly build inventory in the U.S. to take advantage of the lower costs. While chips in these devices will still face tariffs, the rates are expected to be lower than initially feared, giving manufacturers some room to breathe.
However, the celebration may be short-lived. U.S. Commerce Secretary Howard Lutnick warned that even the exempted items would likely face new duties within the next two months. These pending tariffs could again impact prices and disrupt production timelines if implemented.
For now, though, the exemption offers the tech world a valuable—if brief—respite from the ongoing trade war.
