Crypto Markets Surge 10% as U.S. Exempts Key Tech Devices from Tariffs

Crypto markets experienced a slight rebound following the announcement by the U.S. that it would exclude certain technology devices from reciprocal tariffs. The updated guidelines, released on Friday, exempted a range of electronics, including laptops, smartphones, and machines needed to make semiconductors, from the tariffs imposed by the U.S. This move provided temporary relief to companies heavily reliant on Chinese manufacturing, such as Apple, which produces over 90% of its products in China.

China’s Ministry of Commerce responded to the exemptions, describing them as “a small step by the U.S. towards rectifying the misguided approach of unilateral ‘reciprocal tariffs’.” The Ministry reiterated its criticism of the U.S. tariffs, stating that they “severely disrupt the international economic and trade order” and “harm others without benefiting itself.” The Ministry called on the U.S. to abandon the tariffs and return to a path of mutual respect and dialogue.

The exemption of these products from tariffs is significant for companies like Apple, which had been facing potential price increases of up to 85% on its U.S.-sold iPhones to maintain profit margins. Apple had already taken emergency measures by chartering flights to ship millions of iPhones from India to the U.S. to mitigate the impact of potential tariffs. Despite these efforts, Apple’s dependency on China’s well-established ecosystem remains a challenge, as rebuilding its intricate supply chains elsewhere could take decades.

Crypto markets reacted positively to the news, with Bitcoin reaching $86,000 for the first time since ‘Liberation Day’ on April 2. The favorable reaction in the crypto markets suggests that investors view the exemption of key technology devices from tariffs as a positive development for the global economy and technology sector. However, the future of these tariffs remains uncertain, as the U.S. has indicated that future duties are still possible.

Political commentators have been vocal about the U.S. administration’s handling of the tariffs, with some criticizing the administration for backtracking on its initial stance of “no exemptions.” The exemption of key technology devices from tariffs highlights the complex nature of international trade and the challenges faced by companies operating in a globalized economy. As the next round of tariff actions looms, the impact on the crypto markets and the broader economy remains to be seen.