Apple shares saw a major jump this morning going up almost 6% at market open. This comes after news broke that the U.S. and China had agreed to significantly ease trade tariffs.
The move, which reduces reciprocal tariffs from a steep 125% down to 10%, has the market buzzing. While the deal is temporary and set to expire in 90 days, investors are clearly hopeful about what it signals for Apple and the broader tech industry.
A Temporary Deal With Major Impact
Tariffs on Chinese manufacturing have long weighed on Apple’s bottom line. With the iPhone – Apple’s biggest revenue driver – largely produced in China, these extra costs make a real dent.
Back in the company’s last earnings call, CEO Tim Cook said that the existing tariffs were expected to cost Apple roughly $900 million just in the June quarter. He avoided commenting on longer-term projections, but the math is simple: fewer tariffs equal fewer headaches.
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That’s why today’s news is such a big deal. Investors see this as a potential turning point, if not a permanent fix, then at least a breather from the pressure.
Apple’s stock closed at $198.53 on Friday, but leapt to over $211 this morning before settling around $207, up around ~5%. That puts Apple’s market cap back up near $3.1 trillion, not too far behind Microsoft, which currently leads at about $3.3 trillion.
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Meanwhile, reports from the Wall Street Journal suggest Apple may be planning a price increase for the iPhone 17 lineup later this year, partly to cushion the effects of these ongoing tariff uncertainties. If today’s news holds and becomes a longer-term agreement, it could ease the pressure to push prices even higher.
Of course, the situation is fluid. The 90-day expiration leaves plenty of room for change, and trade policy has been anything but predictable lately. Still, this morning’s market reaction shows that for now, investors are betting on better days ahead for Apple.
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