The U.S. Customs and Border Protection Bureau released the latest announcement on the evening of the 11th, narrowing the scope of tariffs, excluding a wide range of consumer electronics from the 125% tariffs imposed by Trump on China and the 10% global basic tariffs on almost all other countries.
This move will reduce pressure on tech stocks, and given the high correlation between the cryptocurrency market and tech stocks, cryptocurrencies are expected to continue rebounding when positive news about the trade war emerges.
Apple Breathes a Sigh of Relief
Notably, this exemption is a significant benefit for Apple. Bloomberg reported that multiple popular Apple consumer electronic products, including iPhone, iPad, Mac, Apple Watch, and AirTag, have been excluded from tariffs.
Although "sectoral tariffs" on semiconductor products may still exist at a lower level, and the 20% tariff on China remains, this policy adjustment is undoubtedly a victory for Apple and the consumer electronics industry highly dependent on Chinese manufacturing.
Before this exemption, Apple had already prepared by adjusting its supply chain, shifting more iPhone production for the U.S. market to India, where local tariffs are much lower. Apple's leadership believes this will be a short-term solution to avoid high Chinese tariffs and reduce significant price increase pressures.
Within just a few months, Apple would have to complete an almost impossible task of moving more iPhone 17 production to India and other locations, which could potentially lead to price increases and force Apple to negotiate better profit margins with suppliers.
Future White House policies might shift again, and Apple may still need to take more drastic actions, but for now, Apple's management can finally breathe a slight sigh of relief. iPhone is Apple's most profitable product, and according to Morgan Stanley estimates, approximately 87% of iPhones are manufactured in China, about four-fifths of iPads also come from China, and 60% of Macs.
