Over the weekend, Magnificent 7 stocks Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL) were afforded some relief from Trump's tariffs. 

The Trump administration announced that smartphones, computers and other electronics would be exempted from reciprocal tariffs. This follows Trump's move to apply 125% tariffs on products from China and 10% baseline tariffs on almost every other country.

There are 20 categories listed that are exempt. Goods from China will still face a 20% tariff, which was placed on China earlier in the year.

The exemption was backdated to 5 April. This action represents the first concession in Trump's conflict with China.

Apple and Nvidia emerge as the major winners

Of the magnificent 7 stocks, Apple and Nvidia stand to benefit the most from this concession.

Apple, which manufactures iPhones, and Nvidia, which designs semiconductor chips, are among the top beneficiaries. 

The biggest exempt category for Chinese goods is smartphones. In 2024, the US imported more than US$41 billion worth of smartphones from China, accounting for more than 9% of total US imports from China, according to Bloomberg. Also covered by the exemption are computers, of which the US imported more than $36 billion last year.

While Apple has moved some of its production to other countries, the majority of its devices are still assembled in China. Last week, Apple reportedly airlifted around 1.5 million iPhones from India to the US to circumvent previously announced tariffs. The news is also likely to be well received by consumers, who reportedly rushed to buy iPhones last week amid fears that tariffs would send prices soaring.

Since reciprocal tariffs were unveiled on 2 April, business leaders have been lobbying the White House for exemptions. 

The exemptions granted mirror Trump's first term, where Apple successfully lobbied Trump for a tariff exemption. 

Apple's share price is down 19% for the year to date and 12% since Trump first unveiled reciprocal tariffs on 2 April. 

Meanwhile, Nvidia's share price is down 20% for the year to date and has remained flat since 2 April. 

US-focused ASX ETF investors also stand to benefit

This news will also be welcomed by US-focused ASX exchange-traded fund (ETF) investors. In particular, those invested in iShares S&P 500 AUD ETF (ASX: IVV) and Betashares Nasdaq 100 ETF (ASX: NDQ). 

Magnificent 7 companies Apple and Nvidia are the largest and third largest companies in the world by market capitalization, respectively. Accordingly, any dramatic changes in their share prices have a material impact on the performance of these ETFs.