US President Donald Trump has exempted a range of technology products, including smartphones, chips, computers, and other electronic devices. This provides relief for the technology sector, which has been under significant pressure from the trade war. According to the US Customs and Border Protection, memory cards, modems, diodes, semiconductors, and other electronic devices have also been exempted from ongoing tariffs.
Large technology companies are expected to benefit from these moves. These tariff breakthroughs could reduce pressure on technology stocks, which have suffered significant losses in the trade war. The cryptocurrency market, which is linked to technology stocks, could surge as risk sentiment increases. Following the tax exemption news, Bitcoin's price exceeded $85,000 on April 12, indicating that the cryptocurrency market is responding positively to the latest macroeconomic developments.
On April 9, President Trump broadly changed trade policy by initiating a 90-day suspension of retaliatory tariffs and reducing tax rates to 10% for countries not imposing tariffs on US goods. Bitcoin increased by 9%, and the S&P 500 rose over 10% on the same day as the tariff suspension occurred.
Macro trader Raoul Pal believes that tax policies are merely negotiation tools to establish a US-China trade agreement. The interest rate for 10-year US Treasury bonds rose to a local high of around 4.5% on April 11, as bond investors reacted to the macroeconomic instability of a prolonged trade war.
Keiser argues that tax exemptions for technology products will not reduce bond yields or promote Trump's goal of lowering interest rates. Confidence in US bonds and the US dollar is weakening and will not stop.
