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

Taiwan • Business • 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.

Key Updates

04/09 02:09

President Trump of the United States levied a 104% tariff on Chinese imports, sparking global market turmoil: U.S. stock markets declined, Apple shares plummeted, and Asian stock markets slipped into a bear market.

On April 9, 2025, President Trump of the United States levied a 104% tariff on Chinese products, further escalating the U.S.-China trade war and leading to global market upheaval. U.S. stocks fell for four straight days, as the S&P 500 index fell below 5,000 points, with Apple's stock price experiencing a cumulative 23% drop. Asian markets were also impacted, with the Kospi index in South Korea entering a bear market and the Nikkei 225 index in Japan plunging more than 1,100 points. The global supply chain faced pressure to restructure, leading companies to adjust their production and logistics strategies. The expansion of production capacity for China's C919 aircraft became a focal point as an alternative in the aviation industry.

04/09 02:09

Trump's New 2025 Tariff Policy Sparks Global Economic Shockwaves: U.S. Hoarding Surge, Asian Exports Suffer, Wall Street Stock Market Plummets

On April 9, 2025, U.S. President Donald Trump initiated the "Reciprocal Tariff" policy, which imposed tariffs ranging from 20% to 50% on 60 countries, including Taiwan, Vietnam, China, and the EU, which caused global market turmoil. American consumers started stockpiling goods, Asian exporting countries suffered significant impacts, and Wall Street experienced a significant downturn. Former U.S. Treasury Secretary Lawrence Summers warned that this policy might lead to an economic recession and urged for its withdrawal. Vietnam proposed allowing duty-free imports of American goods to alleviate the situation.

04/09 01:08

The US's imposition of a 104% tariff on China has led to global market fluctuations, and TSMC is facing heavy penalties due to the Huawei chip investigation.

On April 9, 2025, the United States imposed a 104% tariff on Chinese goods, escalating the US-China trade war and causing global market fluctuations. Chinese A-shares and Hong Kong stocks rebounded due to support from Chinese government funds, while US stocks fell after initially rising at the opening. TSMC is being investigated by the US Department of Commerce for allegedly allowing its chips to be used in Huawei products and may face fines exceeding $1 billion.

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.

US Imposes New Tariffs on Asian Factories: Taiwan, China, and Vietnam Hit Hard

The Trump administration implemented a 10% baseline tariff on April 5 and imposed additional tariffs on 60 specific countries on April 9. The total tariff rates reached 54% for Chinese goods, 46% for Vietnam, 32% for Taiwan, and 26% for India. The US stated that this move aims to rectify long-standing trade imbalances and encourage the return of American manufacturing.

According to US Secretary of Commerce Wilbur Ross, the tariff calculations are based on the trade deficit and non-tariff barriers of each country's exports to the US. For example, Taiwan's effective tariff rate to the US is 64%, so the US imposed a 32% tariff on Taiwan. The tariffs cover multiple industries, including electronics, machinery, medical equipment, and chemicals, with only semiconductors and pharmaceuticals temporarily exempted.

Apple Considers Shifting iPhone Production to India

Apple has emerged as one of the major casualties of this tariff policy. Since 90% of its hardware products are manufactured in China, if exemptions are not granted, iPhone prices could rise by 6% to 30%. UBS estimates that the price of the iPhone 16 Pro Max could increase from $1,199 to nearly $2,300.

To mitigate the impact, Apple plans to shift up to 25% of its iPhone production capacity to India. According to The Wall Street Journal, Apple plans to manufacture 25 million iPhones in India by 2025, with 15 million units supplied to the US market. India currently faces a 26% US tariff, offering a competitive advantage over China's 54%.

Apple has yet to release an official statement regarding this plan, but the market has already reacted significantly. Apple's stock price plummeted 19% in three days, wiping out $638 billion in market value. A buying frenzy has erupted at Apple stores across the US, with consumers rushing to purchase iPhones in anticipation of price hikes.

US Stock and Tech Stocks Plunge, Market Panic Spreads

The US stock market has been on a downward trend since April 5, with the Dow Jones Industrial Average dropping over 4,500 points in four days, closing down 320 points at 37,645 on April 8. The S&P 500 fell 1.57%, and the Nasdaq dropped 2.15%, with tech stocks being hit hardest.

Apple's stock fell 4.98% on April 8, with a cumulative four-day decline of 22%, marking its worst performance since the 2008 financial crisis. Multinational companies such as Amazon, Tesla, and Nike also experienced simultaneous declines. Analysts point out that concerns over supply chain disruptions and rising costs have led investors to withdraw from tech and consumer electronics stocks.

Taiwan's Tech and Semiconductor Supply Chain Under Pressure

As a core part of the global tech supply chain, Taiwan has been significantly impacted by the US-China tariff war. The Taiwan stock market plunged over 2,000 points on the first trading day after the Qingming Festival holiday and fell another 772 points on April 8, hitting a 14-month low. TSMC's stock price dropped 3.8%, despite semiconductors being temporarily exempt from tariffs, as the market fears future policy changes.

Servers and network equipment face a 32% tariff, with Taiwan's exports to the US amounting to $15.9 billion, accounting for 74%. Laptops and mobile phones, which have not been exempted, face the dual pressure of "cost transfer difficulties and declining demand," with annual export values exceeding $15 billion.

Major contract manufacturers like Foxconn, Quanta, Compal, and Pegatron heavily rely on Chinese production. If the US imposes an additional 50% tariff on Chinese-made products, it will further impact their shipments to the US. Component suppliers like Lite-On also report that US clients have paused orders, opting to use inventory instead, adding to market uncertainty.

Semiconductor Industry Temporarily Exempt, But Global Demand Decline Risk Remains

Although semiconductor products are currently not included in the tariff list, analysts highlight that the global economic slowdown is likely to weaken end-user demand, affecting chip shipments. Taiwan's semiconductor exports to the US account for only about 5%, but the US is a major end market, and the indirect impact cannot be ignored.

Additionally, the US government continues to pressure TSMC and Intel to form joint ventures and is pushing for a merger between UMC and GlobalFoundries to strengthen domestic semiconductor manufacturing capabilities. TSMC has announced a $100 billion investment to expand three wafer fabs in the US, but it still cannot completely mitigate geopolitical risks.

Taiwan Government Launches NT$88 Billion Support Plan

In response to export obstacles, Taiwan's Executive Yuan announced the "Response Plan for US Tariffs on Taiwan's Export Supply Chain" on April 4, with a total budget of NT$88 billion, covering financial support, industrial upgrades, market diversification, and other measures. The Ministry of Economic Affairs also provides NT$41 billion in loan subsidies to assist affected industries in stabilizing operations.

President Lai Ching-te stressed the importance of ongoing negotiations with the US for fair treatment and called on the industry and government to work together to address global economic and trade challenges.

References

People Also Ask...

faq

What profound impact will Apple's move of iPhone production to India have on the global supply chain?

faq

How will the Taiwan government's NT$88 billion support plan specifically help local businesses cope with the impact of the China-US tariff war?

faq

Apple is considering shifting iPhone production to India. How might this impact iPhone prices and the trend of the US stock market?