Apples shares rose more than 2% on Monday and pushed the company's market cap back above three trillion. Trump exempted tariffs on phones, computers, and chips which would clearly increase Apple's value. Trumps purpose of doing this was solely because the majority of these project are manufactured in China and other Asian countries. The exemptions on these imports is going to save Apple billions in costs. Trump wants to help Apple because they are the most valued publicly trading company in the U.S. and experienced an 11% drop in the 1st quarter of 2023. However, it seems a little unfair towards the rest of the market. It feels like favoritism and undermining the principle of a level playing field. I hope to see iPhone costs go down.
https://www.cnbc.com/2025/04/14/apple-regains-3-trillion-market-cap-after-trump-exempts-iphone-tariff.html
4 comments:
When Apple’s shares reached over 2%, Apple stock pushed its market cap back above $3 trillion, a significant rebound, especially after the first-quarter dip of 0.11%. The tariff exemptions are undoubtedly essential in maintaining stock performance. By removing or easing tariffs on phones, computers, and chips, products heavily imported from Asia could save Apple billions. That is a massive boost to its bottom line, and investors reacted positively. From Trump’s perspective, helping Apple recover might seem like a smart move to protect a flagship American company, especially one that contributes significantly to the stock market and the broader economy. However, favoring one company, even one as influential as Apple, could be seen as picking winners and losers. Smaller tech firms or competitors that do not get the same tariff breaks won’t see the same cost savings, which creates an uneven playing field. It goes against the idea of a free market where all companies compete under the same rules. Apple might save on production costs, but they do not always pass those savings to consumers. If competition tightens or public pressure grows, they might have to.
I think exempting Apple from tariffs shows clear favoritism and undermines fair market competition. While I’d love to see iPhone prices drop, I doubt the cost savings will actually be passed on to consumers.
Let's hope the exemptions keep coming. There's still a window of opportunity for companies to not reduce their prices if their competitors can't and capture an increase in profit.
Apple’s stock jumped as Trump’s tariff exemptions saved the company billions and pushed its value back above $3 trillion, but this move raises questions about fairness for other companies. Will these special breaks for Apple lead to lower iPhone prices, or just more debate about favoritism in the market?
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