US futures jump after tech tariffs exemptions
Angela Weiss/AFP
- US stock futures are up after the US announced tariff exemptions for many tech products.
- The exemptions relieve the tech sector from 145% tariffs on Chinese imports.
- Trump warned the tariff exemptions are temporary, causing investor confusion.
US futures stock futures are higher after the US announced tariff exemptions for many tech products.
Here's where US stock futures stand at 10:27 p.m. ET on Sunday:
- S&P 500 futures: +0.8% at 5,435
- Dow Jones futures: +0.4% at 40,543
- Nasdaq 100 futures: +1.2% at 19,039
On Friday, the US Customs and Border Protection published a list of tech categories exempt from the huge tariffs levied against China. They include smartphones, computers, and chip-making equipment.
The news was a huge relief for the tech sector, which had been hit with 145% tariffs against China. The goods are still subject to 20% tariffs.
Markets in Asia were boosted by the news, with tech stocks up sharply.
Apple manufacturing partner Hon Hai Precision Industry — also known as Foxconn — surged as much as 7.1% in Taiwan.
South Korean electronics components maker LG Innotek — another Apple supply chain partner — gained over 8%.
In Hong Kong, PC maker Lenovo opened 8.6% higher.
Despite the optimism, President Donald Trump warned in a Sunday Truth Social post that tech-related tariff exemptions are short-lived.
"There was no Tariff 'exception' announced on Friday," Trump wrote. "These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff 'bucket.'"
Commerce Secretary Howard Lutnick also told ABC News on Sunday that the reprieve is temporary and the tech products would face a national security probe.
The changing policies from Trump's administration are creating confusion for investors, analysts at Jefferies wrote in a Sunday note.
They wrote that Trump's policy change likely stems from the tumult in the financial markets and lobbying by large US companies.
Trump is trying to balance "taming market
turbulence but still achieving his objective to re-establish the US industrial base," they wrote.
"We do not rule out that the Trump Administration is also in an urgent need to salvage its policy credibility, by telling the world that its 'vision' has not changed, and new policies will come to achieve
that objective," the analysts wrote.