Australian shares rose on Monday after US President Trump temporarily exempted China from a 125% tariff on popular electronics and introduced flat 10% tariffs on electronics around the globe.

The S&P/ASX 200 Index rose 1.3% or 102.1 points to close at 7748.6.

However, Trump said this reprieve is temporary and part of plans to apply a different tariff to the sector.

The products are "just moving to a different tariff 'bucket,' nobody is getting 'off the hook," Trump reportedly said.

The US president expressed willingness to discuss the scope of his sectoral tariff on semiconductors and products like iPhones and tablets.

"Markets are desperate to get some opportunistic optimism in and will take any relief they can find, especially when a large carveout such as electronics, is slated for lower lower tariffs," said Vishnu Varathan, head of economics and strategy at Mizuho Bank.

However, Trump expressed willingness to discuss the scope of his tariff on semiconductors and products like iPhones and tablets, Bloomberg reported.

On the domestic front, Australian household spending rose in March, with notable growth in discretionary spending due to sports-related events, according to a CommBank report. The CommBank Household Spending Insights Index grew 0.9% in March after a 0.2% decline in February.

While Australian consumers may not immediately notice price changes, the latest escalation in US-China trade tensions could have significant implications for Australia's food, beverage, and agribusiness sector, ANZ Research said.

In company news, EBR Systems (ASX:EBR) received approval from the US Food and Drug Administration to commercially market its WiSE cardiac resynchronization therapy (CRT) system for the treatment of heart failure. Shares of the company fell 17% at market close.

Coles Group (ASX:COL) is planning to restructure its all-important fresh produce section in a move that could renew a price war with supermarket rival Woolworths Group (ASX:WOW). Shares of Woolworths fell nearly 1% at market close.

Lastly, Neuren Pharmaceuticals (ASX:NEU) reported that primary endpoints for its planned single phase-three clinical trial of its drug candidate NNZ-2591 as a treatment for Phelan-McDermid syndrome were confirmed at a meeting with the US Food and Drug Administration. Shares of the company jumped 21% at market close.