Tariffs have been a major topic in the tech world this year, with the ongoing US-China trade war, but it seems we’ve reached a turning point. President Trump came to an agreement with Xi Jinping to reduce tariffs on Chinese goods from 57% to 47%. In addition, China is suspending its restrictions on US rare-earth mineral imports for one year.
This latest development is a breath of fresh air as the Trump administration’s tariffs on Chinese goods reached 145 % at their peak earlier this year. This is certainly good news for Apple, which was one of the companies that suffered the most from the US–China trade war. Cupertino was forced to diversify its supply chain and even absorb some initial tariff-related price shocks.
And while US-China tariffs are slashed for now, there’s still ongoing uncertainty surrounding semiconductor exports to China to which Trump said China and Nvidia would have to talk things out. TikTok’s fate in the US is also uncertain as China’s Commerce Ministry confirmed that it would have to finalize a deal that would resolve the issue properly.
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