After the Trump administration temporarily lifted its tariffs on Chinese electronic goods, stock futures increased on Sunday. Dow futures were up 212 points, or 0.5%. As of 6:18 p.m. ET, the tech-heavy Nasdaq Composite futures climbed 1.26%, while the S&P 500 futures up 0.75%.
Late Friday, the Trump administration exempted electronic imports from reciprocal duties; but, the 20% duty that Trump had previously placed on Chinese goods would still apply to any products made in China, such as computers, phones, and semiconductors.
The gains follow days of wild stock market volatility as President Donald Trump imposed massive tariffs on US trade partners before rescinding much of the import charges. However, investors’ apprehension has been heightened by the lack of clarity around the permanence or temporaryity of various tariff actions, which has maintained pressure on US Treasuries, equities, and the currency.
Since Chinese manufacturing is a significant source of supply for tech titans like Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA), reciprocal tariffs would have increased the cost of consumer items like iPhones. However, Howard Lutnick, the secretary of commerce, stated on Sunday that the exception was “not permanent.” Other administration officials stated that following an examination of the impact of chip imports on national security, a new set of tariffs may be implemented.
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