Published by Global Banking & Finance Review®
Posted on April 14, 2025
4 min readLast updated: January 24, 2026
Add as preferred source on GoogleTech and auto shares rose as Trump suggested tariff exemptions, impacting trade policy and market confidence amid ongoing US-China tensions.
By Akash Sriram and Nathan Vifflin
(Reuters) -Big Tech and auto shares rose after the U.S. removed smartphones and other electronics from its tariffs on China over the weekend, and after President Donald Trump added new wrinkles into his vacillating trade policy on Monday by suggesting he might grant exemptions on auto-related levies already in place.
Trump's aggressive tariffs, which would have raised the rate consumers and businesses would have to pay for imported goods by roughly 25%, sparked a selloff in U.S. assets, including stocks, the dollar and Treasury bonds.
The shifting stances caused investors to question the safe-haven status that America has long enjoyed and sapped both business and consumer confidence. The shock response forced the White House to backtrack, but Trump over the weekend insisted more levies were in store.
Speaking on Monday at the White House, Trump said he was considering a modification to the 25% tariffs imposed on foreign auto and auto parts imports from Mexico and Canada. Those tariffs could raise the costs of a car by thousands of dollars, and Trump said car companies "need a little bit of time because they're going to make 'em here."
U.S. automakers developed a highly integrated supply chain that involves sending vehicles in various stages of completion across the borders several times after the passage of the North American Free Trade Agreement that was renegotiated during Trump's first term. Shares of General Motors and Ford Motor gained 3.4% and 4.2%, respectively.
This weekend's exemptions suggest the White House was becoming more aware of the pain that tariffs had in store for inflation-weary consumers, especially on popular products such as smartphones, laptops and other electronic devices. However, his promise of more tariffs on other key sectors like semiconductors as soon as next week leaves business in a state of flux.
"Not only is the scope of the tariff globally hard to grasp, but the uncertainty means businesses will have little confidence in their planning," said economists at Morgan Stanley on Monday.
Trump and other administration officials, including Commerce Secretary Howard Lutnick, have said tariffs are necessary for boosting American manufacturing, and are critical to the White House's tax plans.
However, the tax on imports - which BlackRock estimated on Monday now comes to about 20% following the pullback on tariffs on tech imports - has undermined business and consumer confidence. Luxury goods maker LVMH reported a drop in U.S. sales in the most recent quarter, while company executives said they may have "some capacity" to boost product - though its facilities in the U.S. have faced notable problems.
"Prolonged uncertainty raises the risk of recession. It may drag on corporate investment and delay longer-term commitments," BlackRock wrote, adding that the risk of a short-term accident had eased due to the pullback on tariffs.
Big Tech shares slumped in the past two weeks as tit-for-tat tariffs between Washington and Beijing stoked fears of higher costs, softer consumer demand and the worst supply-chain disruption since the COVID-19 pandemic. Apple rose 3% on Monday after a 9% drop in the past two weeks. Its flagship product, the iPhone — primarily made in China and imported into the U.S. — was at risk of significant price hikes if substantial tariffs persisted, analysts warned.
Trump has maintained a hefty 145% tariff on China, including the 20% tariffs imposed in February related to fentanyl.
The exemptions cover 20 categories, including computers and laptops, as well as semiconductor devices, memory chips and flat panel displays. Analysts broadly said that the exemptions give companies more time to plan for where tariffs settle out.
"The removal of the worst-case scenario is an element of support (at least temporarily) for the sector," analyst Alberto Gegra of Equita said.
Other consumer-facing companies including computer hardware makers HP and Dell Technologies rose 2.2% and 3.8%, respectively, while chip giant Nvidia edged lower. Nvidia on Monday said it would boost U.S. spending on facilities for AI development - which Trump attributed to the tariff threat.
European and Asian chip stocks also advanced, including major Asian suppliers to companies such as Apple. Foxconn, the largest iPhone assembler, gained 3%, contract laptop maker Quanta rose 5.8% and Inventec, which makes AI servers, rose 4.1%.
(Reporting by Danilo Masoni in Milan, Nathan Vifflin, Paolo Laudani in Gdansk and Akash Sriram in Bengaluru; Eiting by Alun John, Bernadette Baum, Arun Koyyur and Maju Samuel)
The article discusses Trump's tariff exemptions and their impact on tech and auto shares.
Tariffs impact consumer confidence and market stability, affecting stock prices and business planning.
Exemptions primarily impact tech and auto sectors, easing fears of price hikes on electronics.
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