Over the weekend, President Donald Trump decided to temporarily exempt consumer electronics products such as smartphones and computers from the latest round of huge China tariffs. 

That news hit Wall Street fast. Apple’s stock jumped more than 2%. Investors were clearly relieved, that at least for now, Apple’s supply chain wouldn’t be hit as hard as Wall Street feared.

This break couldn’t have come at a better time for Apple. About 90% of its iPhones are put together in China, so with tarifs at an effective level of 145%, Apple was poised to face reduced demand and increased supply chain disruptions and costs. Investors should note that even after the exemption, electronics are still subject to 20% tariffs. 

With the temporary tariff break in place but plenty of uncertainty still hanging around, the big question for investors is simple: Is now a good time to buy Apple stock, or is it better to wait and see how the trade story plays out? Let’s find out.

Apple’s Financial Resilience in a Trade War

Apple’s (AAPL) business model is all about making its products and services work together smoothly. It’s not just about selling iPhones or Macs. Everything in its ecosystem is designed to fit together, making life easier for users and encouraging them to stick with Apple. 

Things got really tense in early April when Apple’s shares fell more than 25% in just one week because of tariff fears. But when Trump announced that electronics would be temporarily exempted, Apple’s stock started to recover, showing just how much the company’s value depends on trade news.

Investors should note that Apple has not entirely dodged the volatility. As of this writing, shares have moved back below the $200 threshold. 

Still, Apple’s business is holding up well. In the first quarter of 2025, the company made a record $124.3 billion in revenue, up 4% from last year. Net income rose 7.1% to $36.3 billion, and earnings per share hit a new high at $2.40. This was thanks to strong sales in services, Macs, and iPads, even though iPhone sales dipped a bit to $69.1 billion. 

Some analysts, like those at Needham, warn that Apple’s earnings could drop by 28% in 2025 if the company doesn’t get a lasting break from tariffs, especially if China makes things harder for Apple in its own market. But others, like Goldman Sachs’ Sung Cho, think the recent selloff was an “overreaction” and point out that Apple’s strong cash flow and flexible supply chain are big advantages.

With a market value of over $3 trillion, Apple is still the most valuable company in the world. Its forward price-earnings ratio is 28.12x, which is higher than the sector average of 18.89x. This shows that investors have a lot of faith in Apple’s brand, pricing power, and its plans for new products and services.

The Engines Powering Apple’s Next Chapter

Apple is making a huge move by promising to spend over $500 billion in the U.S. during the next four years. This shows Apple is serious about building more in America, especially when it comes to cutting-edge tech like artificial intelligence. 

Part of this plan includes a new factory in Texas, more money for advanced manufacturing, and even a training academy in Michigan. Apple is also working on adding powerful AI features to its next iPhones, iPads, and Macs, hoping to make these devices even smarter and more useful for everyday life. 

Is Apple Still a Buy After the Tariff Twist?

Apple’s outlook is a mix of hope and caution. For the full year, analysts think Apple will report earnings per share of $7.22, which is up 7% from $6.75 last year. They expect this number to keep growing, reaching $8.03 in 2026, which would be an 11.2% jump annually. 

The recent news that electronics are temporarily exempt from new tariffs was a big relief, but it’s not a permanent fix. The White House has said more tariffs could still come soon, so there’s still a lot of uncertainty.

Most analysts are still positive about Apple, but they’re not ignoring the risks. Right now, 36 analysts give Apple a “Moderate Buy” rating, with an average price target of $243.18. That means they see about 24% upside from where the stock is now. 

Some, like UBS analyst David Vogt, say investors shouldn’t expect Apple’s new AI features to boost growth right away, but they do see good things ahead once Apple’s new ideas start to pay off.

Conclusion

Apple’s temporary escape from the tariff crossfire gives investors a welcome sigh of relief, but it doesn’t erase the challenges ahead. 

In my view, Apple shares are more likely to rise than fall, especially if the company continues to report earnings growth. The stock is below its pre-tariff highs, which feels like a buying window. I’d lean toward buying now, but keep a close eye on trade news — any reversal could hit hard.