Global Tech stocks rose on Monday after the United States exempted electronics such as smartphones and computer hardware from its high tariffs on China.
This move provided relief to a sector that had been struggling with supply chain disruptions.
Big Tech shares have fallen over the past two weeks as escalating tariffs between Washington and Beijing raised concerns about higher component costs, weaker consumer demand, and the most significant supply-chain disruptions since the COVID-19 pandemic.
The exemptions indicate a growing recognition within the Trump administration of the impact the tariffs would have on inflation-weary consumers, particularly on popular items like smartphones, laptops, and other electronics.
“The removal of the worst-case scenario is an element of support (at least temporarily) for the sector,” analyst Alberto Gegra of Equita said, adding that it helps to avoid a total block of supplies due to tariffs on China exceeding 100%.
Apple shares rose by 3.5% after a 9.1% drop over the past two weeks. Analysts had warned that its flagship product, the iPhone—primarily manufactured in China and imported into the U.S.—was at risk of significant price increases if the tariffs remained in place.
Other consumer-focused companies, including computer hardware makers HP and Dell Technologies saw gains of 3.5% and 5.9%, respectively.
Meanwhile, chip giant Nvidia rose 1.5%, contributing to a broad recovery in semiconductor stocks. European chip stocks also saw gains, with the biggest increases for those most exposed to the U.S. market, such as ASM International and Infineon which climbed between 1.4% and 3.2%.
Major Asian suppliers to companies like Apple saw gains. Foxconn (SS: 601138), the largest iPhone assembler, surged as much as 7.8% before closing 3% higher. Contract laptop maker Quanta finished up 5.8%, while Inventec, a maker of AI servers, rose 4.1%.
The White House announced the tariff exemptions on Friday, which covered 20 categories, including computers, laptops, semiconductor devices, memory chips, and flat panel displays.
However, the relief may be short-lived, as U.S. President Donald Trump pledged new tariffs on imported semiconductors within days, continuing his push to move manufacturing away from China, a key tech market and global production hub.
