The Trump administration announced Friday that it will exempt certain electronics—such as smartphones, laptops, hard drives, and flat-panel monitors—from its reciprocal tariffs. The move aims to prevent a spike in consumer prices and could trigger a tech stock rebound, benefiting major tech firms like Apple, Samsung, and Nvidia.

U.S. Customs and Border Protection confirmed the exemptions, which also apply to some semiconductor chips and manufacturing equipment. These items will not be subject to the steep 145% tariffs on Chinese imports or the 10% baseline tariffs on goods from other countries.

This marks a shift in Trump’s broader tariff policy, which has seen several reversals. Speaking aboard Air Force One Saturday night, Trump said he would reveal more details Monday, asserting the U.S. is now gaining economically after years of losing out—especially to China.

The exemption indicates a recognition that U.S. manufacturing of smartphones and other electronics is unlikely to ramp up anytime soon, despite earlier predictions. Apple, for instance, has spent decades building an efficient supply chain in China. Moving production stateside would be costly and time-consuming, potentially tripling iPhone prices and hurting sales.

This move mirrors a similar exemption Trump granted during his first term. However, in his second term, he initially took a harder stance, imposing broader tariffs that sent tech stocks tumbling. Earlier this week, the market value of tech’s "Magnificent Seven"—Apple, Microsoft, Nvidia, Amazon, Tesla, Alphabet, and Meta—had dropped $2.1 trillion. That loss narrowed to $644 billion after Trump paused tariffs on countries outside China.

With the latest exemption, analysts expect a tech stock rally when U.S. markets reopen, led by Apple. It may also ease consumer fears of rising electronics prices.

This favorable move aligns with Big Tech’s support for Trump, symbolized by key CEOs—Tim Cook, Elon Musk, Sundar Pichai, Mark Zuckerberg, and Jeff Bezos—standing with him at his January 20 inauguration.

Apple received praise in February for pledging $500 billion in U.S. investments and 20,000 new jobs over four years—echoing a similar commitment during Trump’s first term.

“This removes a major overhang from the tech sector,” said Wedbush analyst Dan Ives.

While the White House didn’t directly address the exemptions, Press Secretary Karoline Leavitt said Trump remains committed to reducing reliance on China for essential tech products. She cited ongoing U.S. investments by companies like Apple, TSMC, and Nvidia as evidence that tech firms are accelerating efforts to move manufacturing back to the U.S.

Apple and Samsung did not comment, while Nvidia declined to respond.