President Donald Trump recently exempted smartphones, computers, and other electronics from steep tariffs on Chinese imports. Apple (NASDAQ:AAPL) relies heavily on China for manufacturing, with 90% of iPhones being produced there. These phones are being made in the U.S. and the astronomical price tag of a U.S.-made iPhone was central to the bearish thesis.
However, now that the tariffs exempt phones, is it time to finally invest in AAPL stock, or is this a bull trap?
Apple is obviously going to benefit from these tariff exemptions, but it is still worse off than when these tariffs weren’t there in the first place. Regardless, the stock should at least see a recovery from current prices. But is this recovery going to stick? It’s hard to say if this exemption genuinely signals a long-term recovery because the tariff exemptions may not stick around. Commerce Secretary Howard Lutnick has made it clear that the recent tariff exemptions are temporary. During his appearance on ABC's This Week, Lutnick said that these tariffs should not be seen as a permanent reprieve. Instead, they are part of a broader strategy to impose sector-specific tariffs within the next one to two months.
Smartphones and other electronics exempted from reciprocal tariffs will soon fall under new semiconductor-focused tariffs. Lutnick said that the U.S. cannot remain reliant on Southeast Asia for essential electronics components.
With that in mind, the optimism might not lead to a full recovery in AAPL stock.
Apple is an evergreen investment and you’re unlikely to lose out if you buy and hold for many years. At the same time, it might not be worth buying AAPL right now. The stock below $200 looks attractive and might rally back above $220 in the coming days.
There’s a good chance you'll be able to grab it for lower in “the next one to two months” if Howard Lutnick is to be believed. And even if that does not happen, reciprocal tariffs expiring in three months will make the broader market bad enough to pull down AAPL again.
