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Additionally, duties on imports from non-Chinese countries were trimmed to 10%, while tariffs as high as 145% remain on goods sourced directly from China. The policy shift provides temporary breathing room for Apple, but the administration has warned the exemptions may not last, leaving markets wary.
What’s Behind the Limited Market Reaction?
Despite Monday’s gains, Apple is still down roughly 9% in April after an 8% drop in March. The stock’s Q1 performance marked its worst quarterly return in nearly two years.
Commerce Secretary Howard Lutnick’s comments about upcoming tech-specific tariffs have kept investors cautious, while President Trump’s ambiguous remarks reinforced the perception that the current reprieve could be fleeting.
What Are Analysts Saying?
Analysts are split. Needham’s Laura Martin noted the logistical hurdles and cost implications of moving production out of Asia, suggesting any shift would take years and drive up product prices.
Melius Research’s Ben Reitzes sees margin relief but warned that Apple is not “out of the woods” just yet.
Citi maintained a “buy” rating but cut its price target from $275 to $245, citing broader macro pressures and trimming iPhone shipment estimates by 1%.
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