Trump's 2025 tariff policy triggers a supply chain crisis: Luxury cars from the UK and watches from Switzerland have temporarily halted shipments to the US.

Taiwan • Business • 04/08 09:12
Trump's 2025 tariff policy triggers a supply chain crisis: Luxury cars from the UK and watches from Switzerland have temporarily halted shipments to the US.

In April 2025, U.S. President Donald Trump initiated the "Reciprocal Tariffs" policy, causing global trade disruptions. Brands like Jaguar Land Rover from the UK, Rolex from Switzerland, Nintendo from Japan, and Basic Fun from the U.S. have suspended shipments to the U.S. due to concerns about the uncertainty surrounding high tariffs. If the situation doesn't change, American consumers might face product shortages by July, especially in the areas of cars, luxury watches, toys, and electronics.

Key Updates

04/08 15:10

U.S.-China Trade War Escalates: U.S. Treasury Secretary Criticizes China's Mistakes, Volatility Index (VIX) Soars to 60, Sparking Market Panic

On April 8, 2025, U.S. President Donald Trump announced a comprehensive tariff policy, causing turmoil in global financial markets. U.S. Treasury Secretary Scott Besant criticized China's retaliatory tariffs, stating that China is at a disadvantage in the trade war. Euronext CEO Stéphane Boujnah warned that U.S. policy makes the U.S. resemble an emerging market, leading to capital outflows. The VIX, the U.S. stock market's fear index, surged above 60, hitting its highest level since 2020, and market experts urged for policy measures to stabilize investor confidence.

04/08 14:43

Trump's flawed tariff policy triggers backlash from U.S. companies: Apple moves iPhone production to India, reconstruction costs in Los Angeles skyrocket

In April 2025, former U.S. President Trump announced the implementation of "reciprocal tariffs" on multiple countries, with rates ranging from 10% to 54%. The American Enterprise Institute pointed out that the White House used an incorrect formula, causing the rates to be overestimated by a factor of four, leading to a backlash from businesses. Apple plans to produce 25 million iPhones in India to reduce costs; toy company BasicFun is facing pressure to raise prices. Reconstruction efforts after the Los Angeles wildfires have become more costly due to increased lumber tariffs.

04/08 13:12

An American think tank has revealed a tariff miscalculation by the Trump administration: The actual tariff rate for Taiwan, Japan, and South Korea should be 10%. The EU urges negotiations between the US and China to resolve trade disputes.

On April 2, President Trump of the United States announced the imposition of "reciprocal tariffs" on several countries around the world. However, Brent Neiman, an economist from the American Enterprise Institute and the University of Chicago, revealed that the Trump administration made errors in tariff calculations, resulting in the tariff rates for countries like Taiwan, Japan, and South Korea being overestimated by four times, when they should actually be 10%. European Commission President Ursula von der Leyen and Chinese Premier Li Qiang had a call, urging the resolution of trade disputes caused by U.S. tariffs through negotiations and expressed support for a fair and free international trade system.

04/08 12:44

U.S. Tariff Policy Affects Taiwanese Products: Prices of Taiwanese Soy Sauce Soar, Taiwanese Companies Look to India for Solutions

Beginning April 9, 2025, the United States will impose a 32% tariff on Taiwanese goods, affecting Taiwanese exporters. Due to the tariff, the price of Taiwanese soy sauce in the U.S. has risen from 210 NTD to nearly 300 NTD, and the bubble tea brand COMEBUY TEA is planning a 10% price increase. Some Taiwanese businesses are considering moving their production bases to India to cut down on taxes and transportation costs. The Taiwanese government has launched a contingency plan, encouraging companies to increase their investments in the U.S. and explore diverse market strategies to lessen reliance on the U.S.

04/08 11:39

Trump's tariff policies have severely impacted the Taiwanese-invested textile industry in Vietnam, and businesses are urging the Taiwanese government to negotiate for tariff reductions.

On April 9, 2025, U.S. President Donald Trump initiated the "Reciprocal Tariff" policy, imposing tariffs of 46% on goods from Vietnam and 54% on goods from China. This severely affected Taiwanese textile manufacturers with factories in Vietnam, leading to order cancellations, shipment delays, and factory shutdowns. The industry is urging the Taiwanese government to speed up negotiations with the U.S. to negotiate for tariff reductions or relief measures to ease the burden on the supply chain.

04/08 09:12

Trump's 2025 tariff policy triggers a supply chain crisis: Luxury cars from the UK and watches from Switzerland have temporarily halted shipments to the US.

In April 2025, U.S. President Donald Trump initiated the "Reciprocal Tariffs" policy, causing global trade disruptions. Brands like Jaguar Land Rover from the UK, Rolex from Switzerland, Nintendo from Japan, and Basic Fun from the U.S. have suspended shipments to the U.S. due to concerns about the uncertainty surrounding high tariffs. If the situation doesn't change, American consumers might face product shortages by July, especially in the areas of cars, luxury watches, toys, and electronics.

04/08 07:13

Trump's 2025 Reciprocal Tariff Policies Severely Impact U.S. Stocks: Apple's Market Value Drops by $640 Billion, North American Car Market Expected to Shrink by 2 Million Vehicles

In early April 2025, U.S. President Donald Trump announced the implementation of "reciprocal tariffs" on over 180 countries worldwide, causing a sharp drop in the U.S. stock market, resulting in Apple's market value evaporating by $640 billion in just three days. The North American automotive market is expected to see a sales drop of 2 million vehicles. Several financial institutions have increased their estimates of the probability of a U.S. economic recession, with JPMorgan predicting the likelihood has risen to 60%. Experts recommend that the Federal Reserve cut interest rates to stabilize the market, but Chairman Powell stated there is no immediate urgency to do so.

04/08 06:43

Trump's tariff policy in 2025 severely hits Taiwan's agriculture and fisheries industries, Singapore refrains from retaliation, BNP Paribas downgrades its rating on U.S. stocks.

In early April 2025, President Trump of the United States announced the imposition of import tariffs ranging from 10% to 50% on more than 180 countries globally, with additional tariffs based on trade deficits. Taiwan faced a 32% tariff, severely affecting its agricultural and fishery exports. Singapore, facing a 10% tariff, chose not to retaliate and emphasized deepening cooperation. In response to the policy risks, BNP Paribas downgraded its rating of U.S. stocks to "underweight," warning about the risk of stagflation in the U.S. economy.

04/08 06:43

Former President of the Federal Reserve Bank of New York, Bill Dudley, warns that the U.S. economy faces the risk of stagflation.

After President Donald Trump announced a new tariff policy, the market experienced turbulence, and the economic outlook worsened. Bill Dudley, former President of the New York Federal Reserve, warned that the U.S. faces inflation and slowing economic growth, with stagflation being the best-case scenario. The Federal Reserve is caught in a dilemma between raising interest rates to cool down the economy and lowering them, which could worsen inflation, with internal disagreements over policy. The tariff policy has triggered global trade tensions, shaken market confidence, and raised the risk of an economic recession.

04/08 03:11

U.S. Imposing 10% Tariff on San Marino: Businesses Express Concern, Government Carefully Assessing Economic Impact

On April 2, 2025, the United States announced the imposition of tariffs on imports from multiple countries, imposing a 10% tariff on San Marino, which is lower than the European Union's 20%. This move has sparked interest from Italian and EU businesses in using San Marino as an operational base. The San Marino government is assessing the economic impact of these new tariffs and emphasizes a comprehensive evaluation of all possibilities, focusing on sustainability and economic impact.

British Luxury Cars: Jaguar Land Rover Completely Halts Exports to the US

British car manufacturer Jaguar Land Rover (JLR) has been the first to react to the Trump administration's tariff policies. The company announced that starting in April, it will suspend all car exports to the United States. A JLR spokesperson stated, "Our luxury brand has global appeal... Our current priority is to serve global customers and address the new US trade terms."

The US is JLR's second-largest export market, following the EU. According to the Society of Motor Manufacturers and Traders (SMMT), as of the third quarter of 2024, the total value of UK car exports to the US reached £8.3 billion (approximately $10.7 billion), accounting for nearly 20% of total exports. In response to the tariffs taking effect, JLR and other manufacturers accelerated shipments in previous months, with UK car inventory in the US peaking in February this year, showing a 34.6% year-on-year increase in export volume. However, with the 25% car import tariff officially in place, JLR has chosen to suspend shipments and reassess its mid- to long-term strategy.

Swiss Luxury Watches: Rolex and Breitling Hit Pause

Swiss luxury watch brands have also been affected. Brands like Rolex, Breitling, and Audemars Piguet have currently suspended shipments to the US. US watch dealer Erik Boneta noted, "All major brands have stopped shipments. If the tariffs really take effect, everyone from manufacturers to consumers will have to bear higher costs."

The total tariffs imposed by the US on Swiss goods have reached 31%, significantly higher than the EU's 20%. Although the Swiss government has not immediately taken retaliatory measures, it has warned that this move will impact export industries such as watches, coffee capsules, cheese, and chocolate. Boneta added, "The Swiss don't make hasty decisions; they take their time and think carefully." He is also not optimistic about the short-term performance of the second-hand watch market, believing that in the face of stock market volatility, consumer demand for luxury goods will weaken.

High-Tech Products: Chinese Rare Earths and Medical Equipment in Focus

The high-tech product supply chain has also been affected by the US-China tariff war. After the Trump administration imposed tariffs of up to 54% on Chinese goods, Beijing announced countermeasures, imposing a 34% tariff on US goods and restricting the export of seven rare earth elements. These rare earths are widely used in high-tech products such as laser machines, wind turbines, jet engine coatings, and electric vehicles.

Additionally, China will investigate the export of X-ray tube components used in CT scan machines, which could affect the supply of US medical equipment. These measures have led some high-tech manufacturers to choose to suspend shipments and observe the situation's development.

Toys and Game Consoles: Basic Fun and Nintendo Hit Pause

Florida-based US toy manufacturer Basic Fun announced that it has completely stopped shipments from its Chinese factories. The company's classic products, such as Tonka toy trucks, Care Bears, K'Nex building sets, and Lincoln Logs, are expected to sell out in the US market by July. CEO Jay Foreman stated, "I can't risk having any product suddenly hit with high tariffs while in transit. Absorbing or passing on a 10% to 20% tariff is bearable, but 54% or even possibly 104% is completely impossible!"

Foreman bluntly stated that if tariffs continue to rise, consumers will stop buying, and global trade will come to a halt.

Japanese company Nintendo is also affected. The company announced a suspension of pre-order shipments for the Nintendo Switch 2 in the US. Originally scheduled for release on June 5, the Nintendo Switch 2 faces a 24% tariff on Japanese goods. Nintendo stated, "To assess the potential impact of tariffs and market changes, pre-orders will be temporarily halted."

Market Supply Alert: Shortages Expected in July

Given the current situation, supply chains for multiple categories, including cars, watches, toys, and electronics, have been disrupted. Many companies have chosen to suspend shipments until tariff policies become clear, leading to potential supply shortages in the US market in the coming months. Particularly in the toy and game console sectors, if restocking cannot be done in time, July will become a critical point.

References

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