Apple (AAPL, Financial) pops more than 5% regular trading after Washington and Beijing agreed to slash tariffs by 115%, a move that could unclog supply chains and bolster margins.

Over the weekend, the U.S. said it will cut its 145% duty on Chinese imports to 30%, while China will trim its 125% levy on U.S. goods to 10% for an initial 90-day period before resuming talks.

This surprise accord comes amid growing investor anxiety over Apple's China-centric production: CEO Tim Cook recently reminded markets that half of iPhones destined for the U.S. are now made in India, where duties are far lighter, helping to insulate Apple from the brunt of Chinese tariffs.

Several heavyweight tech names also rallied on Monday as traders cheered the thaw in Sino-U.S. trade tensions, signaling broader relief across the sector's global supply chain. Meanwhile, The Wall Street Journal reports Apple is weighing a fall price hike on its iPhone lineup, a strategic lever that could offset any lingering tariff costs and shore up revenue per device.

Market watchers will be dissecting whether Apple's pricing power and diversified manufacturing footprint can sustain growth if the 90-day tariff window expires without a longer-term agreement.

Why it matters: Lower duties could trim iPhone production costs and boost profit margins just as Apple navigates a complex manufacturing shift—and potential autumn price adjustments. Investors will eye Apple's next quarterly report and the outcome of extended trade talks when the 90-day tariff reprieve ends.