Apple's market cap rebounds above $3 trillion as Trump tariff exemptions ease investor fears

Apple’s market valuation climbed back above the $3 trillion mark on Monday, following a 2% jump in its stock price, as investors responded positively to a White House decision to temporarily exempt phones, computers, and chips from newly imposed tariffs.

The Trump administration’s announcement late Friday brought momentary relief for one of the most China-dependent American tech companies. Apple, which manufactures a majority of its iPhones, iPads, and MacBooks in China and across Asia, had been facing significant financial pressure from escalating trade tensions.

Analysts estimate the exemptions could save Apple billions in costs. According to Morgan Stanley, the company’s potential “annualised tariff cost burden” has now dropped dramatically from $44 billion to $7 billion thanks to the revised measures.

Still, the reprieve comes with a warning. U.S. officials stressed that the tariff exemptions were only temporary and could be revoked depending on the evolving trade negotiations.

“I speak to Tim Cook. I helped Tim Cook recently, and that whole business,” President Donald Trump said Monday, referencing the Apple CEO. “I don’t want to hurt anybody, but the end result is we’re going to get to the position of greatness for our country.”

Apple’s stock had taken a hit earlier this month, falling below the $3 trillion threshold on April 4, just two days after Trump introduced a set of “reciprocal tariffs” aimed at countries like China. The stock had already been sliding in recent weeks, dropping 8% in March and another 9% in April, making the first quarter of 2025 Apple’s worst since 2023.

The recent climb returns Apple to its position as the most valuable publicly traded U.S. company, edging past Microsoft once more. However, the tech giant’s future will remain tightly linked to tariff policy and the broader geopolitical climate, especially if the current exemptions prove short-lived.

While the current outlook appears more optimistic, Wall Street is watching closely for the next round of White House decisions.