In a surprising turn of events, tech giants Apple and Nvidia received a significant boost after the U.S. government temporarily shelved steep tariffs on tech products imported from China. With this move, iconic devices like iPhones, laptops, and crucial semiconductor chips are now safe from a staggering 145% tariff.

The late Friday announcement by U.S. Customs and Border Protection has sparked a wave of relief across Wall Street, particularly among companies deeply embedded in global supply chains. Apple's stock soared by 4.06% by the close of trading, while Nvidia saw a respectable gain of 3.12%. This surge helped propel the tech sector, leading the wider market rally with the Nasdaq up 2.06%, the S&P 500 climbing 1.81%, and the Dow increasing by 1.56%.

However, this relief may be short-lived. Commerce Secretary Howard Lutnick indicated on Sunday that the administration is still leaning toward introducing targeted tariffs with the aim of strengthening U.S. chip manufacturing. The message is clear: this isn't a complete backtrack—it's a recalibration of strategy.

For major players like Apple, timing is crucial. Analysts had previously warned that the introduction of tariffs could compel the company to raise iPhone prices, placing additional strain on consumers already navigating a cautious economic landscape. With the exemption now in place, that concern has been momentarily alleviated.

This shift in White House strategy signals a departure from blanket tariffs toward a more nuanced approach focused on safeguarding industries perceived as vital to U.S. interests, especially semiconductors.

Yet, uncertainty remains in the air. While businesses breathe a sigh of relief, they remain cautious. This abrupt policy shift provides temporary clarity, but it also hints at potential future changes, prompting companies to strategize proactively to stay ahead of the curve.