On April 11, the U.S. government announced on its platform that it would exempt certain electronic products—such as smartphones, laptops, and chips—from so-called “reciprocal tariffs.” Earlier this week, Trump proposed exploring the possibility of exempting imported cars and auto parts from tariffs, while also hinting at the imposition of new tariffs on semiconductors and pharmaceuticals. This move has reignited the tariff storm and sent tremors through the stock market.

Automotive Sector

Recently, the Trump administration announced a 25% tariff on imported vehicles and plans to impose additional tariffs on auto parts by May 3 at the latest. Under the policy, Canada and Mexico are exempted, as they meet local content requirements under the North American Free Trade Agreement (NAFTA).

Several automakers have voiced strong opposition to the policy, arguing that widespread tariffs on auto parts would raise overall vehicle production costs, leading to reduced profits and potential layoffs. This directly contradicts Trump’s goal of revitalizing the American auto industry and boosting domestic employment. Auto parts manufacturers already operate on thin margins, and additional tariffs would further strain their operations.

In response to industry outcry, Trump stated on Monday that he is considering a “temporary exemption” for both vehicles and auto parts to give companies more time to establish production facilities in the U.S. This statement eased corporate anxiety to some extent but also added further uncertainty to future policy directions. The capital market reacted swiftly to the news. On Monday, General Motors’ stock rose 3.9%, Ford gained 3.64%, while Tesla fell 1.46%.

Electronics and Semiconductor Sector

Since the Trump administration announced new tariffs in early April, technology stocks have experienced significant volatility. Subsequent tariff policy changes—such as a 90-day delay for some countries—led to a sharp market rebound, with Apple’s stock surging 15.3% on April 9. However, as the market realized these exemptions might be temporary, Apple’s stock declined again in the following trading days.

The Trump administration claims its tariff policy aims to encourage manufacturing to return to the U.S. However, the market is concerned that this goal will be difficult to achieve in the short term and could instead disrupt supply chains, increase production costs, and ultimately pass those costs on to consumers. Meanwhile, newly published U.S. customs tariffs have exempted products such as smartphones and semiconductors, offering some relief to tech giants like Apple, Dell, and NVIDIA, and prompting a wave of optimism in the capital market.

Still, while these exemptions provide temporary relief, many believe this does not signal the end of the trade war but rather a slight easing of economic tensions. On April 14, the U.S. Department of Commerce announced a new investigation into the national security impact of imports of “semiconductors and semiconductor manufacturing equipment” as well as “pharmaceuticals and pharmaceutical ingredients, including finished drugs.” These new tariff policies could seriously impact the chip and pharmaceutical industries. Overnight, Apple and NVIDIA—two tech giants heavily reliant on global supply chains—saw their share prices dip during trading. At market close, Apple rose 2.21%, while NVIDIA dropped 0.2%.

As a result, although tech companies like Apple have gained some breathing room for now, market uncertainty persists. If the tariff exemptions prove to be short-lived or the trade war escalates further, the industry may face renewed turmoil. Many companies are using this window of opportunity to adjust strategies and replenish inventories, but in the long run, the market outlook remains highly uncertain.