The United States imposes a 26% tariff on goods from India, Taiwanese businesses temporarily halt shipments to the United States, while the domestic market in India bolsters confidence.

Taiwan • Business • 04/08 19:08
The United States imposes a 26% tariff on goods from India, Taiwanese businesses temporarily halt shipments to the United States, while the domestic market in India bolsters confidence.

On April 3, 2025, U.S. President Donald Trump announced a 26% import tariff on Indian goods, impacting Taiwanese companies that have factories in India, leading some Taiwanese businesses to temporarily halt shipments to the U.S. India's strong domestic market supports the operations of these Taiwanese businesses. The Indian government has decided not to take retaliatory measures and is actively negotiating with the U.S. to pursue a bilateral trade agreement. The Indian Minister of Commerce and Industry convened a meeting to address the tariff impact, making bilateral trade negotiations a key area of focus for future developments.

Key Updates

04/09 01:08

Trump's signing of the executive order on reciprocal tariffs sparks global market turmoil: U.S. stocks plummet, Nikkei tumbles, and Korean stocks experience slight fluctuations.

On April 8, 2025, President Trump of the United States signed an executive order imposing steep tariffs on China and other trade partners, leading to upheaval in global financial markets. The three major U.S. stock indices reversed from gains to losses, with the Dow Jones Industrial Average swinging over 2,300 points during the session and ending the day down more than 300 points. The Nikkei 225 Index plunged over 1,100 points at the open, a drop of more than 3%, while the South Korean stock market edged up by 0.11%. Fears of an escalating U.S.-China trade war grew, and experts warned that the global trade order is under threat.

04/08 23:36

The United States imposed a 104% tariff on China effective April 9, as the Trump administration launches negotiations for multilateral trade agreements.

On April 9, 2025, the total tariffs imposed by the United States on imports from China reached 104%, as ordered by President Trump in response to China's refusal to withdraw its 34% retaliatory tariffs. White House spokesperson Li Weit called this a "strong counterattack." Meanwhile, the Trump administration has initiated negotiations for "tailored" trade agreements with nearly 70 countries, with delegations from Japan and South Korea already in the U.S. for talks.

04/08 23:09

US-China Trade War Heats Up: US Imposes New Tariffs on Asian Manufacturing, Apple Considers Shifting iPhone Production to India, US and Taiwan Stock Markets Plunge

On April 9, 2025, U.S. President Donald Trump initiated the "Reciprocal Tariffs" policy, imposing high tariffs on goods from 60 countries, with Chinese goods facing a 54% rate and Taiwanese goods 32%, respectively. In response to pressure from increased costs, Apple plans to shift part of its iPhone production to India. This move caused a market reaction, with U.S. stocks plummeting and Apple's stock price dropping 19% within three days, resulting in a $638 billion loss in market value. Taiwan's technology and semiconductor supply chains were impacted, with the Taiwan stock market dropping more than 2,000 points and TSMC's stock price falling nearly 4%. The Taiwanese government initiated an NT$88 billion support plan to address the challenges.

04/08 22:09

The US-China trade war heats up: The US imposes a 104% tariff on Chinese goods, leading to significant fluctuations in US stocks; China responds by cutting reserve requirements and interest rates.

On April 9, 2025, the United States imposed a 104% total tariff on Chinese goods, escalating U.S.-China trade tensions and causing fluctuations in global markets. U.S. stocks were highly volatile that day, with the Dow Jones Industrial Average dropping 320 points. The Chinese government swiftly responded by devaluing the yuan, lowering reserve requirements and interest rates, and implementing housing market stabilization policies to support the economy. Concerns over a global economic recession intensified, as JPMorgan raised the recession probability to 60%.

04/08 20:40

Former President Donald Trump Announces Global Mutual Tariff Policy, Analysis Reveals It Is Not Truly Mutual

On April 2, 2025, former U.S. President Donald Trump announced a global "reciprocal tariffs" policy at the White House, describing it as a move to achieve trade fairness. However, according to data from the WTO and analyses by economists, these tariffs do not truly adhere to the principle of reciprocity but are based on bilateral trade deficits, imposing tariffs on multiple countries that are higher than the rates those countries impose on the U.S. This policy has sparked criticism for deviating from traditional reciprocal trade principles and has been accused of being aimed at eliminating the U.S. trade deficit.

04/08 19:08

The United States imposes a 26% tariff on goods from India, Taiwanese businesses temporarily halt shipments to the United States, while the domestic market in India bolsters confidence.

On April 3, 2025, U.S. President Donald Trump announced a 26% import tariff on Indian goods, impacting Taiwanese companies that have factories in India, leading some Taiwanese businesses to temporarily halt shipments to the U.S. India's strong domestic market supports the operations of these Taiwanese businesses. The Indian government has decided not to take retaliatory measures and is actively negotiating with the U.S. to pursue a bilateral trade agreement. The Indian Minister of Commerce and Industry convened a meeting to address the tariff impact, making bilateral trade negotiations a key area of focus for future developments.

04/08 18:09

Trump's Tariff Policies Trigger a 2025 US-China Trade War: Taiwanese Manufacturers Adjust Strategies, Apple Moves Production to India

In April 2025, U.S. President Donald Trump announced punitive tariffs of up to 104% on Chinese goods, sparking a new round in the U.S.-China trade war. China immediately retaliated with countermeasures, disrupting global supply chains and shaking market confidence. Taiwanese contract manufacturers shifted their operations to Vietnam and Mexico, and Apple accelerated its shift of iPhone production to India. A buying frenzy for PCs and iPhones broke out in the U.S. market as consumers feared imminent price hikes, leaving businesses and investors facing uncertainty.

04/08 16:40

Trump's tariff policy for 2025 sparks a buying frenzy across the US, and Thai restaurants are facing high cost pressures.

On April 2, 2025, President Trump of the United States announced a baseline tariff of 10% on all imported goods and imposed a maximum punitive tariff of 104% on countries such as China, resulting in a buying frenzy among American consumers. Prices of food, appliances, and clothing are expected to increase by 10% to 30%, and Thai restaurants are facing a 36% tariff pressure due to imported ingredients. This policy has caused market uncertainty, an increase in import costs for businesses, increased consumer spending, and sparked controversy over the formula used to calculate the policy.

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.

US Implements Reciprocal Tariff Policy, India Faces 26% Tariff

On April 3, 2025, US President Trump announced a 10% base tariff on all imported goods, along with additional "reciprocal tariffs" for specific trade partners. Among them, India faces a 26% import tax rate, which is relatively moderate among major Asian economies. In contrast, China and Vietnam face high tariffs of 54% and 46%, respectively.

The Trump administration stated that the policy aims to "rebuild American industry" by increasing tariffs to encourage businesses to return to the US, increase fiscal revenue, and reduce domestic tax burdens. Trump called this move the "Day of Liberation," symbolizing the US regaining control over its economic destiny.

Taiwanese Brands' Supply Chains Impacted, Suspend Shipments to US

Taiwanese companies with factories in India, especially those part of international brand supply chains, are the first to be affected. Ho Chun-hsin, president of the Indian Taiwanese Chamber of Commerce, noted that many of these companies are currently choosing to suspend shipments to the US, temporarily holding goods in customs to avoid immediate losses due to the new tariff policy.

"Once the goods are shipped, it's a loss," Ho said. "Those already at sea can't be helped, but those not yet shipped will be temporarily held in customs." He added that these companies are still in a period of observation and have not yet made long-term adjustment decisions.

However, Ho also pointed out that the vast majority of Taiwanese businesses in India primarily supply the Indian domestic market and do not directly export to the US, so the impact is relatively limited.

Strong Domestic Market, Confidence of Taiwanese and Local Businesses Unshaken

China Steel India General Manager Tien Tsung-kai stated that over 95% of China Steel's business in India supplies the local market, with a very low export ratio to the US, so the new tariffs have little impact on its operations. He noted that although some customers re-export products to the US, Indian products remain relatively competitive in the US market due to higher tariffs faced by competitors like China and Vietnam.

Additionally, Apple is adjusting its supply chain strategy, shifting more iPhone production to India to cope with the 54% tariff on Chinese goods. According to The Wall Street Journal, Apple urgently shipped Indian-made iPhones to the US on five cargo planes at the end of March, indicating India's rising strategic position in the global supply chain.

Indian Government Avoids Retaliation Measures, Actively Advances Trade Negotiations

In response to US tariff measures, the Indian government has chosen not to take retaliation measures. According to reports from The Times of India and Livemint, India is negotiating with the US through official and informal channels, aiming to complete a Bilateral Trade Agreement (BTA) by fall 2025 and seek a delay in the implementation of the 26% tariff.

Indian Foreign Minister S. Jaishankar and US Secretary of State Marco Rubio recently had a phone conversation, confirming their commitment to establishing a "fair and balanced trade relationship." Jaishankar stated on social media that both sides are actively seeking to reach an agreement soon.

According to data from the Press Trust of India (PTI), the US is one of India's largest export markets, accounting for about 18% of its total exports, while imports account for 6.22%. In the 2023-2024 fiscal year, India's trade surplus with the US reached $35.32 billion, a significant increase from $17.26 billion in 2019-2020. This trade imbalance is seen by the US as one of the main reasons for implementing reciprocal tariffs.

Indian Exporters Concerned About Impact, Government Holds Meeting to Respond

Indian Commerce and Industry Minister Piyush Goyal convened a meeting with exporters and industry representatives on April 9 to discuss the potential impact of US tariffs on exports. According to The Economic Times, exporters are particularly concerned about industries such as jewelry, electronics, auto parts, and seafood, which may face declining demand and increased price competition.

According to estimates by the Global Trade Research Initiative (GTRI), if tariffs continue to be implemented, India's exports to the US could decrease by about $5.76 billion in 2025, accounting for approximately 6.41% of total exports.

Bilateral Trade Agreement Becomes Key Focus

Currently, both India and the US have expressed willingness to resolve the dispute through negotiations. Stephen Bannon, US White House advisor, stated that for countries not taking retaliatory actions, US tariffs will not be further increased, and the US hopes to gradually reduce tariff levels through negotiations.

India hopes to secure a delay in tariff implementation before a formal agreement is reached to alleviate pressure on exporters. Negotiations are expected to continue into the second half of 2025, becoming a key focus of international trade observation in the coming months.

References

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