Apple stock soars on news of US-China tariff deal

Apple stock soared almost 6% at market open today, following the announcement of an easement of US tariffs on China. The countries agreed over the weekend to cut reciprocal tariffs from 125% to 10%. However, the deal is set to expire in 90 days as talks over a longer-term resolution continue. Naturally, investors in Apple are reacting positively to the news. Tariffs on Chinese production hurt Apple’s bottom line, as they directly affect the cost of making the iPhone, which accounts for more than half of the company’s revenue. On its last quarterly earnings call, Apple CEO Tim Cook estimated that the tariff policy at the time would incur costs on the company of about $900 million in the June quarter, and declined to speculate any further into the future. Presumably, those costs will go down as long as this new US-China deal holds. Investors will be hoping it becomes permanent, especially in the run up to the iPhone 17 launch in the fall. Wall Street Journal reporting this morning sug ... Read full article.