Apple shares surged 1.7% in pre-market trading on Tuesday, fueled by investor optimism that President Trump may soften his stance on proposed tariffs. The tech giant’s stock was set to open above $198, pushing its market valuation to a staggering $3 trillion. Traders are hoping that the recent delay in EU tariffs signals a broader shift — one that could spare Apple from a steep 25% import duty.

Last Friday, Trump stirred market fears when he stated that Apple “should pay 25%” on iPhones made overseas. The comment sent Apple shares tumbling more than 3%. However, with no official policy or executive order following the remark, investors are betting on the familiar playbook: fiery rhetoric followed by a walk-back that avoids economic disruption.

The potential tariff on Apple devices remains a concern, especially since the iPhone maker still relies heavily on overseas manufacturing. A full tariff could triple the cost of an iPhone, making U.S.-made models financially unsustainable. Apple has made efforts to shift production from China to India — but India, too, is facing its own 26% tariff risk.

So far, Apple has stayed silent on the issue, but market watchers are interpreting that as a sign the company expects leniency. Investors believe Trump will ultimately prioritize economic stability over political pressure, especially when it comes to an iconic U.S. company like Apple.

Until a final decision is made, Apple’s share price is likely to remain sensitive to any updates regarding trade policy. For now, bullish traders are placing their bets on diplomacy winning out — a move that could protect Apple’s bottom line and reassure Wall Street.