Apple CEO Tim Cook (L) takes a picture with David Casarez (R) who just purchased the new iPhone X at an Apple Store on November 3, 2017 in Palo Alto, California.
Justin Sullivan | Getty Images
Shares of Apple spiked about 5% Tuesday after the Trump administration said it will delay tariffs on electronics and other consumer products made in China until mid December.
The United States Trade Representative (USTR) said “certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.” It added that the remaining tariffs on “cell phones, laptop computers, video game consoles, certain toys, computer monitors and certain items of footwear and clothing,” will be delayed until Dec. 15.
The duties had been set to go into effect on Sept. 1, so the announcement eased concerns about the Christmas shopping season.
Shares of Apple suppliers such as Corning, Lumentum and Qualcomm were also up following the USTR announcement.
Apple shares fell 2% on Aug. 1 after President Donald Trump announced that effective next month, the U.S. was adding a 10 percent tariff on the remaining $ 300 billion in Chinese goods that had not faced duties.
Apple warned in June that the tariffs would affect all of its major products produced in China, including iPhone, iMac and iPads. Trump said in July that Apple would not be given tariff waivers or relief for Mac Pro parts made in China. “Make them in USA, no Tariffs!” Trump said.
Apple is expected to release its new version of the iPhone in September, shortly after the tariffs were to go into effect. The company has not said whether or not it would increase the price of the iPhone or absorb the costs.
Apple was not immediately available to comment.
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