Trump Administration Exempts Tech Gadgets from Tariffs Sparking Potential Stock Market Revival

The Trump administration decided to exempt electronics like smartphones and laptops from tariffs, aiding consumer electronics companies. This move benefits major tech corporations and may spark a stock rally. The exemptions aim to alleviate price hikes and economic strains, affecting companies like Apple, Samsung, Nvidia, and more.

The Trump administration announced a pivotal decision late Friday to exclude electronics, including smartphones and laptops, from reciprocal tariffs. This move aims to prevent price inflation on popular consumer electronics largely manufactured outside the US. Big tech firms, such as Apple and Samsung, along with chip manufacturers like Nvidia, stand to gain significantly from this policy shift.

US Customs and Border Protection confirmed that various electronic products, including smartphones, laptops, hard drives, and flat-panel monitors, qualify for this tariff exemption. However, semiconductor-making machinery remains non-exempt. This exemption shields these items from the existing 145% tariffs on China and 10% tariffs elsewhere. It's part of the Trump administration's ongoing adjustments to its extensive tariff strategy.

The decision underscores skepticism surrounding the likelihood of shifting major tech manufacturing to the US, a move predicted but not realized during the trade conflicts of Trump's first term. The announced exemptions not only aim to stabilize the market but also to placate consumer concerns, following significant market value fluctuations within major tech companies earlier this month.

(With inputs from agencies.)