REUTERS/Thomas Peter
- Shares of Apple spiked as much as 6% on Tuesday as part of a market-wide rally in major US stock indexes.
- The gains came after the Trump administration announced plans to delay planned tariffs until December on a number of Chinese imports including cellphones and laptops.
- Investors and analysts have been concerned about Apple’s vulnerability to the upcoming tariffs because of its reliance on Chinese manufacturing for iPhones and iPads.
- Watch Apple trade live.
Apple’s stock soared as much as 6% on Tuesday after the Trump administration said it plans to delay planned tariffs on a number of Chinese imports, including cellphones and laptops. The move is seen allaying investor fears around the company’s vulnerability in the US-China trade war.
The USTR said it will postpone President Trump’s 10% tariff on certain groups of products to December 15 after hearing feedback from the public comment and hearing process.
"Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing," the USTR wrote in a statement on its website on Tuesday.
The USTR also said it will exclude some products altogether from the tariffs based on health, safety, and national security factors.
Read more: The Trump administration delays a portion of planned China tariffs until December
Apple manufacturers iPhones in China and the smartphone maker was poised to take a direct hit from the tariffs set to take effect on September 1. The company would have been forced to either absorb the additional cost of the tariffs or pass that cost along to consumers by raising prices on its products.
Meanwhile, iPhone shipments to China rose 42% in July from the same month last year, bouncing back from a major 35% slump in June, according to Credit Suisse. Investors and analysts have been increasingly concerned by the looming pressure from the escalating trade war on Apple’s iPhone sales in China.
Apple’s rally is also pushing the major US indexes into positive territory for the first time in three days.
Apple is up 33% year-t0-date.
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Source: Business Insider – feedback@businessinsider.com (Daniel Strauss)