Despite his earlier stance against tariff exemptions, President Trump has now opted to exempt smartphones, chips, computers, and other electronics from the new tariffs imposed earlier this month. These exemptions apply to the hefty 125% tariff on imports from China, as well as the baseline 10% tariff on goods from other trade partners. The U.S. Customs and Border Protection officially published these exclusions on Friday evening.

The items benefiting from this decision include smartphones, laptops, processors, and memory chips—products that are primarily manufactured overseas and face tariffs upon entering the U.S. Notably, this move significantly aids Apple, as the company assembles a vast majority of its devices in China, including the highly sought-after iPhone. Without these exemptions, Apple would have faced major decisions regarding pricing strategies in light of the tariffs imposed.

If exemptions were not granted, Apple would have had to contemplate whether to absorb the entire cost of tariffs, raise prices for consumers, or implement catastrophic price hikes potentially doubling or tripling the cost of iPhones in the U.S. With the tariffs still enforced, analysts anticipated that the depletion of existing inventory could lead to staggering increases in consumer prices.

The exemptions also benefit other global manufacturers like Samsung, which, despite primarily producing phones in Vietnam, was still affected by the 10% tariff on handsets imported to the U.S. Even Google stands to gain, as its Pixel devices partially made in China could have been subjected to higher tariffs; however, the company is gradually shifting more production to facilities in India over the next three years.

Additionally, the Dutch company ASML, known for its chip-making machinery, and TSMC, the largest chip foundry in the world, emerge as winners in this scenario. Equipment utilized to manufacture semiconductors, including ASML’s lithography machines, are also exempt from the new tariffs.

While technology firms rejoice at the positive tariff developments, the ultimate beneficiaries may be U.S. consumers. This exemption enables them to purchase their favored electronics without the worry of escalating prices. Unless new announcements emerge before the market opens on Monday, Apple shareholders may witness continued stock recovery, following an impressive 4.06% gain to end Friday’s session at $198.15.

However, it’s important to consider that these tariff exemptions may be temporary. Reports indicate potential changes to tariff amounts for exempted products, suggesting a possible decrease in import taxes for Chinese goods entering the U.S. Market observers will need to remain vigilant to track any further developments.