Apple Inc (NASDAQ: AAPL) shares jumped 5% on Tuesday, buoyed by the news that the U.S. government is delaying imposing tariffs on some Chinese imports until Dec. 15. The goods include computer monitors, video games, some toys, and key Apple products like laptops and cellphones.
According to a statement released by the Office of the U.S. Trade Representative, certain products are being removed from the tariff list based on “health, safety, national security and other factors and will not face additional tariffs of 10 percent.”
On Tuesday, President Donald Trump said that the tariffs would be delayed in order to minimize the impact on the holiday shopping season. Speaking to reporters in New Jersey, the president said he delayed the tariffs because of a “very good call with China” and added that China “would really like to make a deal.”
The U.S.-China trade war escalated on Aug. 1 after Trump tweeted that he would impose import tariffs on $300 billion worth of Chinese items starting Sept. 1, effectively taxing all items that the U.S. buys from the Asian economic giant. China retaliated by suspending its purchases of U.S. farm products and allowing its yuan to depreciate against the dollar.
Apple has repeatedly warned that weaker iPhone sales and headwinds in China are likely to hurt its earnings.
Apple Inc Profile
Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), and TV boxes (Apple TV), among others. The iPhone makes up the majority of Apple’s total revenue.
In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care and Apple Pay, among others. Apple’s products run internally developed software and semiconductors, and the firm is well known for its integration of hardware, software and services.
Apple’s products are distributed online as well as through company-owned stores and third-party retailers. The company generates about 40% of its revenue from the Americas, with the remainder earned internationally. – Warrior Trading News