Key Takeaways
1. Apple is moving iPhones and other products to the US to stabilize retail prices amid new tariffs.
2. The Trump administration has paused planned tariff increases for 90 days for countries not retaliating against US tariffs.
3. China is not included in the tariff pause, with tariffs increasing from 104% to 125%.
4. Over 75 countries have asked the US government to negotiate a solution regarding tariff increases.
5. The stock market reacted positively, with the S&P 500 rising 9.5% and the Nasdaq Composite increasing 12.2%.
Apple has recently moved a significant quantity of iPhones and various other items from its stock in India and China to the US. This action was taken to maintain the retail prices as stable as possible in light of the new tariffs placed on all imports to the US.
Tariff Pause for 90 Days
The Trump administration has put a stop to the planned tariff increases for 90 days concerning countries that have not retaliated against US tariffs. Therefore, these nations will face a universal US tariff of 10% until July. When asked about the reason for this delay, the president remarked: “People were jumping a little bit out of line. They were getting yippy.”
Increased Tariffs on China
However, as the title suggests, China is not included in this pause. The Trump administration has escalated the already high 104% tariff to a staggering 125%, marking the start of what is being called a new trade war between the two nations. The motive? In retaliation to the previously set 104% tariff on goods exported from China, Beijing imposed 84% tariffs on imports from the US. Following this, the Trump administration accused China of showing a “lack of respect” and increased the tariff to 125%, which took effect immediately.
Negotiations and Market Impacts
Over 75 countries have urged the US federal government to “negotiate a solution” since the Trump administration revealed its plans for tariff increases, as stated by the president. Ultimately, he decided to ease off, paving the way for three months of negotiations with multiple nations.
Many of you might already know how these tariff changes impact the stock market. On Wall Street, the S&P 500 index surged by 9.5%, marking its largest single-day rise since 2008. The Nasdaq Composite also rose by 12.2%—its best performance since 2001.
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