NASHVILLE, Tenn. — The Trump administration late Friday said it would exclude electronics like smartphones and laptops fromÌý, a move that could help keep the prices down for popular consumer electronics that aren’t usually made in the U.S.
It alsoÌýwould benefit big tech companies like Apple and Samsung and chip makers like Nvidia and sets the stage for a likely tech stock rally.
U.S. Customs and Border Protection said items like smartphones, laptops, hard drives, flat-panel monitors and some chips would qualify for the exemption. Machines used to make semiconductors are excluded, too.
That means these items won’t be subject to the currentÌýÌýor theÌý.
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FILE - The iPhone 14, iPhone 14 Pro and iPhone 14 Pro Max are displayed at the Apple Fifth Avenue store, Friday, Sept. 16, 2022, in New York. (AP Photo/Yuki Iwamura, File)
It's the latest tariff change by the Trump administration, which madeÌýÌýin its massive plan to put tariffs in place on goods from most countries.
The exemption seemed to reflect the president’s realization that his China tariffs are unlikely to shift more manufacturing of smartphones, computers and other gadgets to the U.S. anytime soon, if ever, despite the administration’s predictions that the trade war might prod Apple to make iPhones in the U.S. for the first time.
°Õ³ó²¹³Ù'²õÌýÌýafter Apple spent decades building up a finely calibrated supply chain in China. What’s more, it would take several years and cost billions of dollars to build new plants in the U.S. That would confront Apple with economic forces that could triple the price of an iPhone, threatening to torpedo sales of its marquee product.
Trump’s decision to exempt the iPhone and other popular electronics made in China mirrors similar relief he gave those products during the trade war of his first term in the White House.
Trump began his second term seemingly determined to impose the tariffs more broad this time, triggering a meltdown in the market values of Apple and other technology powerhouses.
The turmoil battered the stocks of tech’s “Magnificent Sevenâ€:ÌýApple, Microsoft, Nvidia, Amazon, Tesla, Google parent company Alphabet and Facebook parent company Meta Platforms. At one point this past week, the combined Magnificent Seven’s combined market value plunged by $2.1 trillion, or 14%, from April 2 when Trump unveiled sweeping tariffs on a wide range of countries.
Some of the losses eased this past Wednesday, when Trump paused the tariffs outside of China, paring the lost value in the Magnificent Seven to $644 billion, or a 4% decline, from April 2. Now, the stage is set for another tech rally Monday when trading resumes in the U.S. stock market, with Apple likely leading the way because the iPhones made in China remain the company’s biggest money maker.
The electronics exemption also should relieve consumer worries that the China tariffs would result in hefty price hikes on smartphones and other devices that became essential tools of modern living.
It’s the kind of friendly treatment the industry envisioned when Apple CEO Tim Cook, Tesla CEO Elon Musk, Google CEO Sundar Pichai, Facebook founder Mark Zuckerberg and Amazon founder Jeff BezosÌýÌýduring his Jan. 20 inauguration. That united display of fealty reflected Big Tech’s hopes that Trump would be more accommodating than President Joe Biden’s administration and help propel an already booming industry to even greater heights.
Apple won praise from Trump in late February when the Cupertino, California, company committedÌýÌýand add 20,000 jobs in the U.S. during the next four years. The pledge was an echo of a $350 billion investment commitment in the U.S. that Apple made during Trump’s first term when the iPhone was exempted from China tariffs.
The move takes off “a huge black cloud overhang for now over the tech sector and the pressure facing U.S. Big Tech,†Wedbush analyst Dan IvesÌýsaidÌýin a research note.
In a statement issued Saturday, White House Press Secretary Karoline Leavitt did not address the exemptions specifically but indicated the administration still plans to push for tech companies to move manufacturing to the U.S.
“President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops," Leavitt said in the emailed statement.
She said the administration secured U.S. investments from tech companies including Apple, TSMC and Nvidia and these companies are "hustling to onshore their manufacturing in the United States as soon as possible.â€
Neither Apple nor Samsung responded to a request for comment Saturday. Nvidia declined to comment.
___
Liedtke contributed from Berkely, California.
4 strategies to navigate market volatility in 2025
Navigating market volatility in 2025
After reaching all-time highs in February, U.S. markets have experienced notable volatility amidst a flurry of news regarding tariffs and rapid changes in the geopolitical landscape. The S&P 500 is now negative for the year, having declined nearly 9% from its mid-February peak (as of March 31, 2025), while the tech-heavy Nasdaq briefly entered correction territory in early March, and is down over 9%. This pullback has effectively erased the post-election gains, explains, and investors have been seeking safe havens like bonds and gold.
Understanding Current Volatility Drivers
Market weakness has been driven primarily by high levels of uncertainty rather than any meaningful change to economic fundamentals. Investors dislike uncertainty in any form, and are experiencing it through multiple channels.
While investors get tariff headlines multiple times a day, they still don't know: Will all the proposed tariffs actually go into place? How long will they last? What might ultimate settlements look like? How will consumers respond? How will manufacturers respond, domestically and abroad?Ìý
The past several weeks have made it clear that proposals and threats can change at any moment. Unpredictable policy leads investors to reduce risk exposure and keep capital on the sidelines, at least temporarily until they have a better sense of the playing field.
Contextualizing Market Pullbacks
While there has been impressive performance in equity markets for two consecutive years, pullbacks are normal. On average, the S&P 500 has seen a correction, or decline of at least 10%, every year going back to 1928. Declines of 5% are even more common, occurring over three times per year on average over that period. In spite of these regular drawdowns, the S&P 500 has managed strong double-digit returns over the past 100 years. In many instances, pullbacks can be healthy for durable market returns, curbing.
Portfolio Diversification Demonstrating Value
This volatility has reinforced the benefits that diversification can offer across both asset classes and geographic regions. Thus far this year, while the S&P 500 is down over 4% as of March 31, 2025, the market has seen:
- International equity strength: European equities have delivered their best relative performance to start the year since 2000, with double-digit gains during the first two months of 2025. Emerging markets are also showing gains against U.S. market declines.
Ìý - Fixed income outperformance: Bonds are up over 2% for the year while U.S. equities have declined, demonstrating their essential role as portfolio stabilizers during market turbulence.
Foreign markets entered the year in a very different place than U.S. equities. International stock valuations were at historical levels of discount vs. U.S. stock valuations. Many international economies are also significantly earlier in their economic cycle (meaning they have seen recessions more recently) than the U.S., setting the framework for a longer potential period of future economic growth. At the same time, investors have been meaningfully underweight in international equities relative to historical levels. All of these factors are contributing to the outperformance of international stocks seen year-to-date.
Meanwhile, bonds are acting as a hedge against a potential economic slowdown in the U.S. Domestic consumers and businesses are grappling with monetary policy that has been restrictive for an extended period of time and significant uncertainty related to trade policy. As investors grow concerned about the potential impact to the economy, they bet that the Fed may have to ease and bring rates lower in the future than they are today. This causes bond prices to rise, offsetting weakness in the equity markets.
Medium-term, U.S. equity markets can be a great place to be invested. Some of the highest quality companies in the world are in the S&P 500—these businesses can grow earnings regardless of economic pressures. The Fed also has the capacity to stimulate the economy should growth and corporate earnings come under meaningful pressure.Ìý
However, other regions of the world can generate attractive returns, especially given relative valuations and greenshoots as it relates to international earnings. And diversification can help ensure balanced returns in periods of temporary weakness in a particular region or asset class.
Strategic Actions for Investors
During periods of elevated volatility, here's what disciplined investors can do:
1. Strategic Tax-Loss Harvesting
Market declines create valuable opportunities. Identifying positions with unrealized losses while maintaining market exposure through temporary substitutes can generate significant tax benefits. Ideally, you've implemented automated harvesting processes to capitalize on volatility without making emotional decisions during market stress.
2. Portfolio Rebalancing
Market movements naturally shift allocations away from targets. Given the recent move lower in equities and appreciation of bonds, you may have experienced drift relative to your target allocations. Rather than relying solely on calendar-based approaches, consider a volatility-based rebalancing strategy that responds directly to market conditions. This approach allows portfolios to systematically "buy low and sell high" by trimming outperformers and adding to underperforming assets.Ìý
3. Opportunistic Capital Deployment
For investors with available capital to deploy, you can take advantage of better entry points into U.S. equity markets compared to recent market highs. Historical data suggests that after a 5% pullback, average stock returns one year later are around 12% and markets are higher 75% of the time.Ìý
4. Stick to Your Plan
Perhaps most critically, avoid reactive decisions driven by headlines or short-term market movements. If you have a financial plan, remember that it already incorporates scenarios of significant market stress. Stay disciplined—the benefit of having a plan is you aren't forced to sell at inopportune times because you took too much risk or lacked confidence in your positioning.
During volatile times, you can also take a moment to revisit your long-term goals. This helps you stay focused and keep things in perspective. Try to limit how much you're watching the daily market news; it can often lead to knee-jerk reactions.
Conclusion
While market drawdowns can be stressful, data shows that if you are invested for decades, the negative impacts of short-term market movements are dwarfed by the long-term positives of compounding returns. There can be a significant upside in staying disciplined and taking advantage of the opportunities created by market volatility.
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