Apple's stock has seen a marked increase following a significant development in U.S.-China trade relations. The two countries have agreed to a temporary reduction in tariffs for a 90-day period. Under this agreement, U.S. tariffs on Chinese imports will be cut down to 30%, while China's tariffs on U.S. goods will fall to 10%. This diplomatic move has improved market sentiment, as reported by the Financial Times.

This announcement has had a positive impact on major stock indices, with a notable rally in technology stocks. The S&P 500, Dow Jones, and Nasdaq have all experienced gains, with increases of 2.53%, 2.51%, and 3.34% respectively. Reuters highlighted that Apple, a leading tech stock, saw its shares rise by 6.2%. As of May 12, 2025, Apple's stock is trading at $209.74, reflecting a $11.21 increase from the previous close.

In a strategic shift to counteract trade challenges, Apple is moving a significant portion of its iPhone production for the U.S. market to India. This decision aims to reduce the impact of tariffs and maintain competitive production costs. Additionally, Reuters noted that Apple is contemplating an increase in iPhone prices for its upcoming models, introducing new features and designs to justify a potentially higher price point of up to $1,142, a substantial rise from the current $799 entry price.