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| apple stock goes up us china tariff cut |
Apple’s stock price went up by 6% on Monday after the United States and China made a deal to cut import taxes, called tariffs. This deal will last for 90 days.
Because of this big jump in stock price, Apple’s total market value increased by about $180 billion. Apple is now worth around $3.15 trillion.
🇺🇸 TRUMP SAYS HE TALKED TO APPLE CEO TIM COOK
President Donald Trump said he spoke with Tim Cook, the CEO of Apple, after the deal was made with China.
Trump said,
“I spoke to Tim Cook this morning. He’s going to increase Apple’s investment in the U.S. He’s going to build a lot of factories.”
Note: Quote from Trump as reported by CNBC on May 12, 2025 - Conformed
Trump mentioned that Apple plans to spend $500 billion in the U.S. This includes making AI servers in Houston, Texas.
But this is not a new plan. Apple already announced this investment in February 2025.
WHY APPLE IS AFFECTED BY CHINA TARIFFS
Apple makes most of its products, like iPhones, iPads, and MacBooks, in China. China is also Apple’s third-biggest market.
Because of the trade war between the U.S. and China, Apple had to pay high tariffs, which made business more difficult.
Now, with the new agreement, tariffs are reduced:
- From 125% down to 10% for 90 days.
- But some 30% tariffs still remain on parts made in China.
- Apple also pays 10% tariffs on items made in India and Vietnam.
Apple is trying to make more products outside China, but moving factories takes a lot of time and money.
STOCK MARKET GOES UP WITH TECH COMPANIES LEADING
After the tariff news, the stock market went up.
- Apple stock went up 6%
- Amazon stock rose more than 8%
- The Nasdaq index increased by 4%
Investors are happy because they hope this deal will lead to a bigger trade agreement between the U.S. and China.
WHAT THIS MEANS FOR APPLE AND CUSTOMERS
Apple may avoid raising iPhone prices for now. But if tariffs come back later, Apple may increase prices to cover costs.
Experts say Apple cannot move iPhone production to the U.S. quickly. It will take years and a lot of money to make that change.
IN SHORT
- Apple’s stock price jumped after U.S.-China tariff cut.
- Trump said he spoke to Apple CEO Tim Cook.
- Apple already plans to spend $500 billion in the U.S.
- Some tariffs still exist on Apple products.
- Stock market is going up, but the future is still uncertain.
FAQs
Q1: Why did Apple’s stock price go up?
A: Apple’s stock went up because the U.S. and China agreed to cut high import taxes (called tariffs) for 90 days. This gives relief to Apple, which makes most of its products in China.
Q2: What are tariffs?
A: Tariffs are extra taxes that countries charge on goods coming from another country. These can make products more expensive.
Q3: What was the tariff agreement between the U.S. and China?
A: Both countries agreed to lower tariffs from 125% to 10% for 90 days. This is to reduce trade tensions and restart talks.
Q4: How much did Apple’s value increase?
A: Apple’s market value increased by $180 billion in just one day. The company is now worth about $3.15 trillion.
Q5: Did Trump talk to Apple’s CEO Tim Cook?
A: Yes, President Trump said he spoke with Tim Cook and discussed Apple’s future investment in the United States.
Q6: Is Apple really investing $500 billion in the U.S.?
A: Yes, but this is not new. Apple already announced in February 2025 that it will invest $500 billion over time to grow its U.S. operations.
Q7: Will Apple move iPhone manufacturing to the U.S.?
A: Not right now. Experts say moving iPhone production to the U.S. would be very costly and take many years to do.
Q8: Are all tariffs gone now?
A: No. Some tariffs are still in place:
30% on some Chinese parts
10% on products made in India and Vietnam
Q9: How did the stock market react to this news?
A: The market went up. Tech companies like Apple and Amazon saw big gains. The Nasdaq rose 4%, showing investor confidence.
Q10: Will this lower iPhone prices?
A: Not immediately. But the tariff pause might help Apple avoid price increases in the short term.
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