Apple is the biggest beneficiary of the US-China tariff truce.

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 Apple is the biggest beneficiary of the US-China tariff truce.

The United States and China announced a halt to their tariffs and reached a mutual agreement to reduce import tariffs in both countries, potentially a major relief for Apple.

This trade agreement comes after talks between the two economic giants in Geneva.

According to the joint statement, the United States will reduce tariffs on Chinese goods from 145% to 30%, and China will do the same by reducing import tariffs on American products from 125% to 10%.

China is a manufacturing hub for Apple, with its products, including the iPhone, produced in Chinese factories and distributed worldwide.

In April, US President Donald Trump announced reduced tariffs on China, escalating the trade war.

Both sides began announcing new tariff rates on each other, with US tariffs rising by as much as 145%.

Earlier this month, Apple CEO Tim Cook said that production of iPhones destined for the US would be shifted to India due to the high rate of imports of Chinese goods.

The company also projected a $900 million cost loss for the current quarter.

Cook said a week ago, "We expect India to be the country of origin for the majority of iPhones sold in the US."

Ultimately, the US-China tariff agreement is likely to restore calm to Apple and allow it to carefully consider its decision to shift production.