In a surprising turn of events, President Donald Trump has announced a temporary pause on tariffs for most countries, lasting 90 days. This declaration comes just days after he publicly affirmed his commitment to his existing tariff policies. In a recent post made on Truth Social, Trump revealed that more than 75 nations had contacted U.S. officials seeking relief from the tariffs imposed on their exports.
He indicated that this unprecedented level of communication played a significant role in his decision to pause the reciprocal tariffs, offering a reduced rate of 10% during this timeframe. However, the situation differs for China, as the president has decided to elevate tariffs on Chinese imports to a staggering 125%. This significant increase is expected to lead to higher prices for iPhone models imported from China into the U.S.
In response, Apple is likely to intensify efforts to increase device production in countries other than China, particularly India, which manufactures a portion of the iPhone models, including the entire lineup of the iPhone 16. Nonetheless, current production levels in India still fall short of those in China. Trump justified the heightened tariffs on China by accusing the nation of showing a “lack of respect” towards global markets.
His remarks imply frustration over China’s reactive tariffs against U.S. goods each time American tariffs were adjusted. He expressed hope that China would recognize that its past practices of exploiting the U.S. and other nations were no longer viable. Following the announcement, Wall Street experienced a surge, with the Dow Industrial Average rising by 2,200 points.
Meanwhile, Apple saw a $20 increase in its stock price, and Tesla’s shares rebounded by $30. However, the economic instability may continue, as the 90-day pause is set to expire, bringing the possibility of renewed chaos in the near future.