AP Photo/Richard Drew
- On Friday, the US and China reached a phase-one trade deal that includes some relief from tariffs, such as doing away with a tax set to go into effect on Sunday.
- Shares of Apple rose as much as 1.3% on Friday to a new high.
- Apple would’ve been hit by the proposed tariffs, which would’ve added 15% to prices of some of its most popular products, including the iPhone.
- Watch Apple trade live on Markets Insider.
- Visit Business Insider’s homepage for more stories.
With the agreement, Apple has narrowly avoided a 15% tariff that would’ve been applied to some of its most popular products had a scheduled round of tariffs gone into effect on Sunday.
That would’ve hiked the prices of some of Apple’s flagship products. According to Daniel Ives of Wedbush, the price of the iPhone could’ve gone up by as much as $150, which would’ve lowered demand for the product by as much as 8%. The iPad and MacBook could also have been subject to price increases.
Apple had been pushing back against the proposed tariffs. In November, the company filed requests to be excluded from the round, according to Bloomberg. Even President Donald Trump said during a visit to an Apple facility in Texas that he was looking into whether Apple should be exempt from the tax.
Most of Apple’s supply chain is in China, including an iPhone assembly plant in Zhengzhou that is responsible for producing half of the iPhones in the world.
If the increase in Apple’s stock price holds through the end of trading Friday, it will mark a four-day streak of gains for the company. Earlier in the week, Apple was unseated as the world’s most valuable public company when its roughly $1.2 trillion market valuation was beaten by Saudi Aramco’s market capitalization of more than $2 trillion.
Apple was up 72% year-to-date through Thursday’s close.
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