US stocks get boost from tariff exemptions but trade war confusion persists

US stocks rose Monday as traders rallied on the Trump administration’s exemption for tariffs on smartphones, computers and various electronics imported from China.

The Dow rose 312 points, or 0.78%. The broader S&P 500 rose 0.79%. The tech-heavy Nasdaq Composite gained 0.64%.

All three major indexes closed higher after a choppy day of trading. Stock indexes had opened higher before giving up some gains across the morning as a rally in tech stocks lost some steam. The Nasdaq rose as much as 2.4% in the morning before fluctuating between gains and losses midday and then gradually gaining. The Dow and the S&P 500 briefly dipped into the red midday before gaining in the afternoon.

US stock futures had gained over the weekend after investors realized on Saturday that the Trump administration issued tariff exemptions for electronics imported from China, according to a US Customs and Border Protection notice posted late Friday.

The exemptions come after President Donald Trump on Wednesday imposed a tariff rate of 145% on imports from China. However, the exemptions do not apply to the 20% tariff on imports from China over the country’s role in the fentanyl trade. Apple (AAPL) rallied Monday.

While stocks gained, confusion lingers around the trade war with China: Commerce Secretary Howard Lutnick on Sunday said the exemptions for electronics are only a temporary reprieve. Those products will face separate levies, according to Lutnick.

“(Electronics are) exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick told ABC News on Sunday.

In another back-and-forth, Trump said Monday he is considering a short-term tariff exemption for automakers. Trump’s 25% tariff on vehicles went into effect April 3 and tariffs on auto parts are slated to go into effect no later than May 3. Ford (F), Stellantis (STLA) and General Motors (GM) all surged more than 3% after Trump’s comments.

“I’m looking at something to help some of the car companies where they’re switching to parts that were made in Canada, Mexico and other places and they need a little bit more time,” Trump said during remarks at the White House. “They’re going to make them here, but they need a little bit more time.”