Alibaba Group Holding Limited (NYSE:BABA) shares are trading higher on Monday after President Donald Trump and his administration announced consumer electronics are exempt from the 145% reciprocal tariffs on Chinese goods.
What To Know: According to the New York Post, the exemption covers smartphones, laptops and chips, which led to gains in the company’s stock and other U.S.-listed Chinese stocks such as PDD Holdings Inc. (NASDAQ:PDD) and NIO Inc. (NYSE:NIO).
The new exemption allows these companies to maintain competitive pricing and avoid price increases. Furthermore, it eases investor concerns over disrupted supply chains and reduced consumer demand due to higher pricing, both of which could have negatively impacted revenue.
The news also lifted American technology stocks like Apple, Inc. (NASDAQ:AAPL), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Dell Technologies, Inc. (NYSE:DELL). Many of these companies rely on components from China in order to manufacture their goods.
The relief from tariffs for electronics is likely temporary. Commerce Secretary Howard Lutnick warned Sunday that the Trump administration is preparing new tariffs aimed at semiconductors and other tech components.
Related Link: Ironically, Because Of All The New Tariffs, It’s Now Way Cheaper To Make Our Chocolate Bars Outside The US,’ Says MrBeast
BABA Price Action: At the time of writing, Alibaba shares are trading 6.49% higher at $114.72, according to data from Benzinga Pro.
Image: via Shutterstock
