Stock futures surged on Sunday after the Trump administration granted a temporary reprieve on tariffs for electronics imported from China. This move brought a brief moment of relief to markets that have been rattled by ongoing tariff disputes.
As of 6:18 PM ET, Dow futures rose by 0.5%, or 212 points. The S&P 500 futures gained 0.75%, while the Nasdaq Composite futures advanced 1.26%.
On Friday evening, the Trump administration announced it would temporarily exempt certain electronic goods from reciprocal tariffs. Products like computers, phones, and semiconductors—manufactured in China—will continue to face the previously imposed 20% tariff on Chinese imports.
The rebound in futures comes amid a turbulent period for stocks, which have experienced sharp swings following President Donald Trump’s aggressive tariff policies. These tariffs have targeted U.S. trading partners, only to be followed by partial reversals and exemptions. However, uncertainty persists, as investors remain unclear about whether these tariff moves are permanent or temporary. This volatility has kept pressure on stocks, the U.S. dollar, and even U.S. Treasuries.
Tech giants such as Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA)—which depend on Chinese manufacturing—stand to benefit from this temporary tariff relief. The reciprocal tariffs, if imposed, would have increased the prices of popular consumer products like iPhones.
Commerce Secretary Howard Lutnick clarified on Sunday that the tariff exemption was not permanent. Other administration officials indicated that additional tariffs could be imposed following an investigation into the national security implications of semiconductor imports.
President Trump took to his Truth Social platform, reiterating his tough stance on trade imbalances: “NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!”
The ongoing back-and-forth over tariffs has left many investors hesitant, with uncertainty casting a shadow over market decisions.
“Investors will not invest in the United States when Donald Trump is playing ‘red light, green light’ with tariffs and saying, ‘Oh, and for my special donors, you get a special exemption,’” Massachusetts Democratic Senator Elizabeth Warren said on CNN’s State of the Union.
In recent weeks, Trump has imposed tariffs after repeatedly delaying levies on automotive imports from Canada and Mexico. A 10% baseline tariff has been enacted across all countries, with heightened rates placed on approximately 60 nations deemed the “worst offenders,” including Cambodia (49%), Vietnam (46%), and the European Union (20%).
The volatility reached a peak on April 3, as stocks plummeted following the tariff news, with two days of sell-offs wiping out nearly $6 trillion in market value. The market turmoil continued into the following week as uncertainty surrounding tariffs persisted.
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