Tech executives and investors feared the effect of sweeping tariffs impacting tech products at multiple stages of the supply chain.
United States President Donald Trump has exempted an array of tech products, including smartphones, chips, computers, and select electronics, from reciprocal tariffs, giving the tech industry a much-needed respite from trade pressures.
According to the US Customs and Border Protection, storage cards, modems, diodes, semiconductors, and other electronics were also excluded from the ‘reciprocal’ trade tariffs.
“Large-cap technology companies will ultimately come out ahead when this is all said and done,” The Kobeissi letter wrote in an April 12 X post.
The tariff relief will take the pressure off of tech stocks, which were one of the biggest casualties of the trade war. Crypto markets are correlated with tech stocks and could also rally as risk appetite increases on positive trade war headlines.
Following news of the tariff exemptions, the price of Bitcoin BTC at $84,550 broke past $85,000 on April 12, a signal that crypto markets are already responding to the latest macroeconomic development.
Markets hinge on Trump’s every word during macroeconomic uncertainty
President Trump walked back the sweeping tariff policies on April 9 by initiating a 90-day pause on the reciprocal tariffs and lowering tariff rates to 10% for countries that did not respond with counter-tariffs on US goods.
Bitcoin surged by 9%, and the S&P 500 surged by over 10% on the same day that Trump issued the tariff pause.
Macroeconomic trader Raoul Pal said the tariff policies were a negotiation tool to establish a US-China trade deal and characterized the US administration’s trade rhetoric as “posturing.”
Bitcoin advocate Max Keiser argued that exempting select tech products from import tariffs would not reduce bond yields or further the Trump administration’s goal of lowering interest rates.
The yield on the 10-year US Treasury Bond shot up to a local high of approximately 4.5% on April 11 as bond investors reacted to the macroeconomic uncertainty of a protracted trade war.
“The concession just given to China for tech exports won’t reverse the trend of rates going higher. Confidence in US bonds and the US Dollar has been eroding for years and won’t stop now,” Keiser wrote on April 12.
Source: Cointelegraph
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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