On April 15, 2025, Wall Street saw a strong rally as U.S. stock futures surged in response to a major announcement on trade policy. The U.S. government revealed that several high-tech products, including smartphones, computer components, and semiconductor manufacturing equipment, would now be exempt from the previously proposed 145% tariff on Chinese imports. Instead, these items will only be subject to a reduced 20% tariff under a different classification known as the “Fentanyl Tariffs.”
This policy shift brought immediate relief to the tech sector. Major players like Apple, Nvidia, and Intel saw pre-market gains, signaling renewed investor confidence. The news also rippled across Asian markets—Foxconn’s shares jumped 9%, LG Innotek rose by 6%, and Lenovo closed the day up 3%. These movements indicate a positive global response to the softened trade stance.
Despite the optimism, former President Donald Trump clarified that these changes were not permanent exemptions. He emphasized that the products had only been shifted to a different tariff category and would be subjected to a national security review in the near future. Commerce Secretary Howard Lutnick echoed this sentiment, stating that the policy change was a temporary measure and not an indication of a long-term shift in trade relations.
Analysts remain cautiously optimistic. Experts at Jefferies commented that the administration’s mixed messaging on tariffs creates uncertainty, but the market response suggests that investors are willing to take calculated risks in the tech sector. They speculate that the tariff reclassification could be politically motivated, aimed at bolstering domestic tech industries while avoiding backlash from global markets.
