Prediction: This Stock Will Be the Biggest Winner of the U.S.-China Trade Deal

From Nasdaq: 2025-05-15 04:20:00

In a significant development, the U.S. and China have agreed to ease trade tensions by reducing import tariffs from over 100% to a more manageable 10%. This positive news has boosted investor sentiment and led to a rally in the stock market, particularly benefiting technology companies that heavily rely on imports.

Apple (NASDAQ: AAPL) stands out as a potential big winner from the U.S.-China trade agreement. With 90% of iPhones made in China, Apple faced the risk of heavy tariffs impacting its earnings. However, the new tariff level of 30% removes a major threat, leading to a 7% increase in Apple’s stock following the announcement.

Investors are now eyeing Apple as a promising investment opportunity, especially with the stock trading at a lower forward earnings multiple of 29 compared to over 35 previously. The company’s strong position in the tech industry and the reduced tariff risk make it a compelling choice for investors looking to capitalize on the U.S.-China trade deal.

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