Apple (AAPL) stock may have caught a break with the recent tariff pause, but China is still the wildcard. According to Wedbush analyst Dan Ives, a dedicated Apple bull, China remains the “biggest X variable” related to the company’s future. From supply chains to iPhone demand, tensions with Beijing could still shake things up. AAPL stock gained over 15% on Wednesday.
For context, President Donald Trump announced a 90-day suspension of tariffs on Wednesday for several countries, introducing a lower 10% import duty on most foreign goods. However, tensions with China remain high, as tariffs on Chinese imports were raised to 125%.
Tariff Pause Gives Markets a Breather
Ives praised the tariff pause and said it was exactly what the market had been waiting for. He believes it opens the door for big trade talks in the coming months, especially with China, which remains the biggest unknown. He further mentioned that for tech stocks, the pause brings much-needed relief and “pulls stocks and the market from the edge of the cliff.”
While Ives welcomed the relief rally, he pointed pointed out that the tariff situation has been a major mess over the past week. Notably, AAPL stock is down by 10.8% since April 2, when Trump announced initial tariffs on Liberation Day.
Earlier this week, Ives cut his price target on Apple stock from $352 to $250, pointing to the company’s significant exposure to tariff-related risks. He warned that if iPhones were made entirely in the U.S., the price could skyrocket to as much as $3,500.
China Cloud Hangs Over Apple’s Rally
Despite the 90-day pause on tariffs for many countries, Apple still faces major challenges in China. Since Apple relies heavily on China for manufacturing and sales, higher tariffs could raise production costs and pressure profit margins. Additionally, rising trade tensions may disrupt Apple’s supply chain or lead to consumer backlash in China, a key growth market.
On the other hand, Apple’s growing manufacturing presence in countries like India, Vietnam, and Thailand has proven valuable amid escalating trade tensions with China.
Is Apple Stock a Good Buy Right Now?
On TipRanks, AAPL stock has a consensus Moderate Buy rating among 33 Wall Street analysts. That rating is based on 17 Buy, 12 Hold, and four Sells assigned in the last three months. The average AAPL price target of $242.61 implies a 22% upside from current levels.
