Global technology markets saw a strong bounce back on Monday as the United States temporarily eased trade tensions by exempting popular electronics—including smartphones, laptops, and computer hardware—from its latest wave of tariffs on Chinese imports. But while this exemption brings short-term relief, the sector remains on edge, with President Donald Trump vowing to impose new tariffs on imported semiconductors as early as next week.
The exemption, announced late last week, paused what could have been a 145% tariff hike on tech goods. The White House cited inflation concerns and the impact on American consumers as a reason for the partial rollback. Analysts say the move gives tech companies a breather to reevaluate their global supply chains amid ongoing uncertainty.
Major tech stocks responded immediately: Apple shares jumped 5.8% after two weeks of declines, while Dell Technologies rose 5.4% and HP gained nearly 4%. Asian suppliers also saw gains, with Apple’s manufacturing partners like Foxconn and Quanta climbing 7.8% and 5.8%, respectively.
Despite the optimism, markets remain wary. Trump’s renewed threat to impose tariffs on semiconductor imports is sparking concerns across the industry. Chips are the backbone of everything from smartphones to AI servers—and a large share of them are produced outside the U.S., in countries like Taiwan, South Korea, and China.
“If these semiconductor tariffs go into effect, they could create ripple effects through the entire tech ecosystem—raising costs and threatening availability,” said Angelo Zino, senior analyst at CFRA Research.
Commerce Secretary Howard Lutnick reaffirmed the administration’s commitment to reducing dependence on Chinese manufacturing, but admitted that the U.S. supply chain isn’t ready for a full decoupling just yet.
Analysts warn that while current tariff rollbacks may prevent immediate inflationary shocks, any future levies—particularly on semiconductors—could destabilize both pricing and production plans for tech giants like Apple, Nvidia, and Intel.
“The exemptions provide a temporary lifeline,” said Morgan Stanley strategists in a note Monday, “but policy back-and-forth continues to erode business and consumer confidence.”
In summary, while Monday’s rally offered a brief sigh of relief for global tech markets, the road ahead remains unpredictable. With semiconductors potentially in the crosshairs and trade policy shifting rapidly, companies will need to act quickly and strategically to shield themselves from the next round of disruptions.
