Apple investors breathed a sigh of relief as the tech giant secured an exemption from proposed 100% tariffs on semiconductor imports by committing to a massive $100 billion expansion in US manufacturing over the next four years. This raises Apple’s total US investment pledge to $600 billion, sending its shares up over 3% premarket. The move not only safeguards the iPhone maker from trade penalties but also strengthens partnerships with key suppliers like Corning, whose stock soared nearly 7% on renewed contracts for iPhone glass.
Strategic Maneuvering Pays Off
While rivals face uncertainty under new trade policies, Apple’s preemptive investments have positioned it favorably. A surprise collaboration with a competitor will see chips produced domestically, reducing reliance on foreign suppliers. Analysts project a modest earnings boost, though concerns linger over potential retaliatory tariffs in key markets like India, which could dent profits by 7%. Despite divided analyst outlooks, Apple’s proactive strategy has solidified its market resilience amid escalating trade tensions.
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