Apple and other electronics stocks were rising Monday as investors welcomed a temporary exemption to tariffs. For now the market seems to be looking past the threat of sector-specific levies. 

U.S. Customs Border Protection said in a notice Friday that smartphones and other electronics were exempt from tariffs on China with the exception of the 20% duty related to the fentanyl crisis. 

Apple shares were rising 5.6% in premarket trading, while Dell Technologies was up 5.4%, Super Micro Computer was gaining 5.8%, and HP Inc. was up 3.8%.  

Stocks were gaining despite administration officials and President Donald Trump himself saying over the weekend that tech products would potentially face separate levies as part of an investigation into semiconductors. However, it seems unlikely such duties would be equal to the 145% tariffs placed on Chinese goods. 

The exempted tech products accounted for roughly $100 billion in U.S. imports from China in 2024, according to Census Bureau data, or 23% of total imports from the country. Last year, 26% of all imports of the excluded products were from China, including 81% of smartphones and 78% of computer monitors.

While the threat of tariffs still hangs over the technology sector, Trump told reporters over the weekend that he would discuss levies with individual companies “because you have to show a certain flexibility, nobody should be so rigid.”

That suggests Apple and other companies will have a chance to negotiate exemptions, potentially in exchange for U.S. manufacturing commitments.

“While Apple is likely relieved near-term, uncertainty remains. In the end, our bet is still on Apple and Tim Cook—who may still need to increase its 4-yr $500 billion in US spending guarantees with the Trump administration to get out of paying tariffs altogether,” wrote Melius Research analyst Ben Reitzes in a research note on Monday.

Reitzes kept a Buy rating and $226 price target on Apple stock.

Similarly, Citi Research analyst Atif Malik said that while Apple stock was likely to rally following Trump’s announcement, “Apple products are not immune from weak macro.” The analyst maintained a Buy rating and $245 price target on the shares.