Apple Inc. is trading at a two-month high above $200 in Monday’s pre-market session after the United States and China agreed to resume trade negotiations. This bodes well for the American company because it could take the pressure off Apple, which would likely become the target of retaliation if President Trump refuses to remove the ban on the Chinese tech company, Huawei, and tariffs on other Chinese products.
Chinese customers have also been avoiding American-made products so far in 2019, and that is very unlikely to change, due to the hard-nosed rhetoric from the communist – controlled press following the G-20 meeting. Without a lift on the tariffs on Chinese products, it likely will only get worse as tensions increase.
Apple products have seen a massive drop in sales in China, and only a full trade agreement and the removal of trade barriers of Chinese products and tech would start to ease relations.
If China and the United States can come to an agreement, this could mean that Apple products could make a resurgence within the Chinese tech market.