US stock markets are poised for a resurgence as President Trump relaxes mobile tariffs, with shares of tech giants like Apple expected to recover from a 14% drop. The exemption includes laptops and chips, a climbdown from pressure from Republican leaders concerned about the cost of smartphones.
US Stock Markets Expected to Recover After Trump Drops Tariffs on Mobiles
Shares in tech’s big seven US firms dropped as much as 14% after Trump announced his tariffs. The exemption, seen as a climbdown, includes laptops and chips, and is likely to help firms such as Apple and Nvidia.
The US stock market is a collection of financial markets where publicly traded companies' shares are issued, bought, and sold.
The two largest exchanges in the US are the New York Stock Exchange (NYSE) and NASDAQ.
The 'home to over 2,400 listed companies' statement actually refers to the NYSE, while NASDAQ lists more than 3,000. The correct sentence should be rewritten as: The NYSE is home to over 2,400 listed companies, while NASDAQ lists more than 3,000.
The stock market plays a vital role in the US economy, allowing individuals and institutions to invest in businesses and share ownership.
Impact of the Exemption on Tech Firms
The temporary reprieve was widely seen as a climbdown after pressure from Republican leaders concerned that the soaring cost of smartphones would spark a voter backlash. US retailers import about 80% of all smartphones, many of them from China, which Trump has slapped with tariffs totalling 145%. The exemption includes items like laptops, hard drives, smartphones, flat-panel monitors, and some chips, as well as vital machines made outside the US that are used to make semiconductors.
Reaction from Trump and China
Speaking on Air Force One on Saturday evening, Trump said he would be more specific about the latest exemption rules on Monday. ‘We’ve been making a lot of money,’ he said. ‘It’s been the other way around. Other countries, in particular China, was making a lot of money.’ However, the US commerce secretary, Howard Lutnick, said the reprieve was likely to be lifted in 90 days and reiterated Trump‘s longstanding plan to apply a different, specific levy to the sector.
Donald Trump was born on June 14, 1946, in Queens, New York.
He graduated from the University of Pennsylvania with a degree in economics.
Trump's business career began with his father's real estate company, and he eventually took over as president.
He gained fame with his reality TV show 'The Apprentice.'
Donald Trump served as the 45th President of the United States from 2017 to 2021, implementing policies on immigration and trade.
His presidency was marked by controversy and divisiveness.
China has responded with a tariff on all US exports of 125%. Beijing said at the weekend that the reprieve for smartphones was a ‘small step‘ toward easing the trade fight between the world’s two biggest economies. Despite this, Trump warned that no country would be getting ‘off the hook‘ on his punishing tariffs, again singling out China for criticism.
With a population of over 1.4 billion, China has become the world's most populous country.
Its economy has experienced rapid growth since the 1980s, transforming it into a global economic powerhouse.
China is now the world's second-largest economy, accounting for approximately 15% of global GDP.
The country's economic growth is driven by its manufacturing sector, which produces over 30% of the world's goods.
China's growing influence extends beyond its borders, with significant investments in infrastructure and trade across Asia and beyond.
Consequences for Tech Firms
Apple has spent decades building up a finely tuned supply chain in east Asia, including inside China. The firm has pledged to move some facilities back to the US over the next four years, which will cost it $500bn, including constructing a giant factory in Texas for artificial intelligence servers but was expecting to retain much of its international network as it expands its sales.
