Global technology stocks rose on Monday after the United States exempted electronics such as smartphones and computer hardware from steep reciprocal tariffs on China, offering some relief to a sector recently battered by supply-chain uncertainty.
Big Tech shares had slumped over the past two weeks as escalating tariffs between Washington and Beijing fueled fears of higher component costs, weaker consumer demand, and the most severe supply-chain disruption since the COVID-19 pandemic.
The tariff exemptions signal a growing recognition within the Trump administration of the potential inflationary impact on consumers, particularly for popular products such as smartphones, laptops, and other electronics. The removal of these tariffs provides temporary support to the technology sector by helping to avoid major supply-chain disruptions that could have resulted from tariffs exceeding 100% on Chinese goods.
Shares of Apple jumped 5.5% in U.S. premarket trading after falling 9.1% in the previous two weeks. Analysts had warned that Apple’s flagship iPhone, primarily manufactured in China, was vulnerable to significant price hikes if substantial tariffs remained in place. Other consumer technology companies also rallied, with computer hardware makers HP and Dell Technologies each gaining around 6% to 6.8%, while chipmaker Nvidia climbed 1.8% amid a broader recovery in semiconductor stocks.
European chip stocks also moved higher, particularly those with strong exposure to the U.S. market. Companies like ASM International and Infineon rose between 3% and 3.8% during morning trading. In Asia, major Apple suppliers posted strong gains. Foxconn, the largest iPhone assembler, rose as much as 7.8% before paring gains to close 3% higher.
Contract laptop manufacturer Quanta finished up 5.8%, and Inventec, which produces artificial intelligence servers, closed 4.1% higher.
The White House announced the exemptions on Friday, covering 20 categories of products including computers, laptops, semiconductor devices, memory chips, and flat panel displays. However, the relief may be short-lived.
President Donald Trump said on Sunday that fresh tariffs on imported semiconductors would be announced within days as part of an effort to shift manufacturing away from China. Commerce Secretary Howard Lutnick also indicated that the exempted electronics would face new duties, alongside semiconductors, within the next two months.
Despite the looming tariffs, the immediate exemption offers breathing room to major tech firms like Apple, allowing them to stabilize their pricing strategies and build up inventory in the U.S. to navigate the current iPhone sales cycle without needing immediate price hikes.
