Trump's 145% tariff bombshell on Chinese goods sent shockwaves through Wall Street—and wiped out over $640 billion from Apple's (AAPL, Financial) market cap in days. But late Friday, the White House announced an unexpected exemption round. Per updated Customs guidance, smartphones, laptops, semiconductors, solar cells, flash drives, and key electronics are now exempt. The move spares tech giants from what analysts feared would be a full-blown supply chain crisis. Even better, the carve-out is retroactive to April 5, giving U.S. importers some breathing room on products already shipped.
According to the administration, the exemption isn't a backpedal—it's a “strategic runway” to bring manufacturing back to U.S. soil. But let's be real: this was likely damage control. With the S&P 500 (SPY, Financial) down over 5% in a week and 10-year Treasury yields spiking 50 basis points, pressure was mounting. Wedbush analyst Dan Ives called the exclusion of smartphones and chips a “dream scenario” for investors and warned that implementing the full tariff list would've triggered “Armageddon” for Big Tech. CEOs from Silicon Valley clearly got the message across.
Tesla (TSLA, Financial), which had been under pressure amid broader tech turmoil, saw a rebound alongside the sector. While the new 145% tariff remains in place for most Chinese imports, tech's worst-case scenario is off the table—for now. This surprise exemption flips the script, handing tech investors a win after a brutal week. The question now? Will companies actually reshore production—or just ride out the storm until the next policy twist.
