Following the White House’s announcement that taxes on imports of smartphones and some other goods manufactured in China will not be imposed, US stock markets surged on Monday.
Following President Donald Trump’s statement that these commodities were only being transferred to a different tariff category or “bucket,” the pullback announced early on Saturday would not last long.
In Europe, the major market indexes in France and Germany both increased, while the UK’s FTSE 100 ended the day up 2.1%. Global stock markets remain weaker than before Trump’s Liberation Day” tariff announcement on April 2nd, even the partial recovery.
Following Trump’s 90-day suspension of various tariffs, the major US and European stock indexes saw unprecedented declines followed by record increases. Under Trump’s new trade policy, most Chinese imports into the US were subject to a 145% tax. In retaliation, Beijing imposed 125% taxes on US goods entering China.
Smartphones, laptops, and other excluded electronic items will be included in the tariffs that the Trump administration anticipates imposing on semiconductors on Monday. After Monday, the tech-heavy Nasdaq index was up 0.78%. The Dow Jones Industrial Average increased 0.64%, while the S&P 500 went up 0-.79%.
Apple’s share price jumped 5% in early trading on Monday before finishing at 2.2% higher. Apple manufactures the majority of its iPhones for the US market in China. Tech company Dell and chip manufacturer ASML also increased.
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