Behind the tariff turmoil that has caused chaos in global markets since last week, there is a separate agenda after United States (US) President Donald Trump announced a 90-day tariff pause yesterday.
This tariff suspension situation has brought relief to the world that is stressed in facing the tariff challenge, but at the same time Trump announced new tariffs of 125% on China due to its opposition to the world-famous republic.
The announcement of the 90-day pause is good news for the giant Apple company, seeing its shares jump more than 15%.
Apple is also now actively shifting iPhone supplies to the US and Indian markets, although most of its products are based in China, which will face the highest tariffs.
Investors hope that Apple will be granted a tariff exemption as the company has committed to investing $500 billion in the US over the next four years.
Analyst Wamsi Mohan at BofA Securities estimates that Apple's costs will increase by up to 90% if production is done entirely in America.
He sees several options for Apple to mitigate the risk, namely by sourcing more iPhones from India, and exploring price increases for cost efficiency as well as shifting product launch dates to more suitable times.
Indirectly, the 90-day pause from Trump has had a positive impact on Apple, although the tariffs will be re-enforced with greater challenge after the suspension period expires.
