Logitech shares gain, seen as the biggest beneficiary from tariffs exemption

Investing.com -- Logitech (SIX:LOGN) shares jumped over 7% on Monday after the Trump administration’s rollback of reciprocal tariffs positioned the company as one of the most advantaged U.S. hardware manufacturers.

Analysts at Morgan Stanley described Logitech, along with Apple (NASDAQ:AAPL), as the biggest incremental beneficiary of Friday’s presidential memorandum, which significantly reduces tariff exposure on major technology imports. 

The brokerage previously estimated the annualized tariff burden across the U.S. IT hardware coverage at over $50 billion, or 30% of group EBIT. That figure has now fallen to $7 billion, or 4% of EBIT.

The memorandum, retroactively effective April 5, exempts a broad range of hardware products from both the 125% tariff on Chinese imports and the 10% baseline on goods from other countries. 

Products now excluded include smartphones, PCs, tablets, monitors, mice, keyboards, storage arrays, and other widely used categories.

Logitech stands to benefit significantly, as many of its core products fall within the exempted categories. Meanwhile, remaining tariff exposure on items such as webcams and headsets affects a smaller portion of its portfolio. 

According to Morgan Stanley, Logitech’s China-heavy manufacturing footprint amplifies the impact of the exemption, reducing the likelihood the company will need to raise prices or adjust supply chains in the near term.

Despite the reduction in costs across the sector, Morgan Stanley remains cautious on hardware stocks broadly. 

The brokerage flagged ongoing uncertainty, pointing to expected new semiconductor tariffs that could be announced within two months, as confirmed by President Trump. 

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In addition, a recent CIO survey showed a pullback in IT hardware spending, with projected revenue declines of 2% in 2025, versus consensus expectations of 6% growth.

Still, within this environment, Logitech is seen as better positioned than most. The sharp drop in tariff exposure removes a major overhang, and its product alignment with the exemption list gives it a near-term advantage as the market absorbs the policy shift.

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