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.

Taiwan • Business • 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.

Key Updates

04/09 07:13

Trump announced a 104% tariff on Chinese goods, leading to wild fluctuations in US stocks and causing the volatility index to soar.

On April 9, President Trump of the United States imposed a 104% tariff on Chinese imports, causing turmoil in global financial markets. The three major U.S. stock indices experienced significant declines, with Dow Jones Industrial Average futures dropping by 785 points at one point, the S&P 500 index falling 115.5 points, and the Nasdaq 100 index dropping 398 points. Panic in the market intensified, with the VIX index soaring to 52.33, marking its highest level since 2020. Investors moved from optimism to selling, reflecting their concerns over the escalating trade war.

04/09 07:13

Trump announces a 104% tariff increase on China, sparking global market turmoil: U.S. stock futures take a nosedive, Taiwanese stocks take a hit, and the New Taiwan dollar weakens.

On April 9, 2025, President Trump of the United States announced a 104% tariff increase on Chinese goods, leading to turmoil in global financial markets. U.S. stock futures saw a significant drop, with the Dow Jones Industrial Average dropping 778 points, and the Taiwan Stock Exchange dropping a total of 2,837 points over two days. The New Taiwan dollar depreciated to 33.073 dollars, while the euro surpassed $1.1 as the dollar weakened. Asia-Pacific stock markets generally declined, with the Nikkei index falling 3.93%. Market volatility was severe, and investor sentiment became more cautious.

04/09 03:38

The intensification of the US-China trade war has caused global stock market volatility: the Nikkei plummeted 1,300 points, Taiwan's stock index fell below 18,000, and US stocks ended the day in the red across the board.

On April 9, 2025, President Trump of the United States imposed a 104% tariff on Chinese goods, and China retaliated with a 34% tariff, escalating the trade tensions and causing turmoil in global stock markets. The Nikkei index plummeted 1,304 points, the South Korean KOSPI index hit a six-month low, Taiwan's stock market dropped below 18,000 points, and TSMC's stock price experienced volatility. All four major U.S. stock indices closed lower, with the S&P 500 falling below 5,000 points. Global markets are facing systemic pressure due to tariff policies.

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%.

US Tariff Policy Raised to 104%, China Vows Retaliation

The White House Press Secretary Karoline Leavitt announced on April 8 that starting from 12:01 AM Eastern Time on April 9, an additional 84% tariff will be levied on all Chinese imports, adding to the previously implemented 20%, bringing the total tariff rate to 104% Source: CBS News. This move is in response to China's announcement of a 34% retaliatory tariff on April 4. President Trump stated that if China does not withdraw its retaliatory measures, an additional 50% tariff will be imposed on Chinese imports.

China's Ministry of Commerce responded firmly, stating they will "fight to the end," and from April 10, will impose a 34% tariff on US goods, covering coal, agricultural products, energy, and other imports Source: Holland & Knight.

A-shares and Hong Kong Stocks Rebound with "National Team" Support

Despite the escalating trade war, A-shares and Hong Kong stocks rebounded with the support of Chinese official funds. On April 8, the Shanghai Composite Index rose by 1.58%, the Shenzhen Component Index increased by 0.64%, and the ChiNext Index rose by 1.83%; the Hong Kong Hang Seng Index rose by 1.51%, and the Hang Seng Tech Index surged by 3.79% Source: ETtoday.

China's four major "National Team" funds, including Central Huijin, China Chengtong, China National Gold, and China Electronics, announced on the 8th that they would increase their holdings of Chinese stock assets, supported by refinancing from the People's Bank of China. According to statistics, 75 listed companies have issued buyback announcements, and 20 companies have announced increased holdings, with total capital input exceeding 10 billion yuan Source: ETtoday.

US Stocks Surge at Opening, Then Plummet as All Four Major Indices Fall

US stocks on April 8 initially surged in early trading due to market hopes for tariff negotiations, with the Dow Jones Industrial Average soaring by 1,461 points, a gain of 3.85%. However, as the White House confirmed the tariff policy would take effect on the 9th, market sentiment shifted sharply, and the Dow ended down 320.01 points (-0.84%), closing at 37,645.59 points Source: NOWnews.

The S&P 500 Index fell by 79.48 points (-1.57%), closing at 4,982.77 points, marking the first time in a year it fell below 5,000 points. The Nasdaq Index dropped by 335.35 points (-2.15%), closing at 15,267.91 points. The Philadelphia Semiconductor Index plunged by 132 points (-3.57%), closing at 3,562.94 points Source: CTWANT.

TSMC Under US Investigation, Faces Potential Fine Over $1 Billion

TSMC (Taiwan Semiconductor Manufacturing Company) is under investigation by the US Department of Commerce due to suspicions that its manufactured chips ultimately ended up in Huawei's AI server processor Ascend 910B. According to reports from Reuters and Tom's Hardware, the chip was commissioned for production by Chinese company Sophgo and matches the chip design used in Huawei products Source: Tom's Hardware.

Since TSMC uses manufacturing equipment containing US technology, it is subject to US export control regulations even if produced in Taiwan. If violations are confirmed, the fine could amount to twice the transaction value, estimated to exceed $1 billion. A TSMC spokesperson responded that the company has stopped supplying Huawei since September 2020 and is cooperating with the US Department of Commerce investigation Source: MoneyDJ.

Following this news, TSMC's ADR fell by 3.28% on April 8, closing at $141.37, marking a new low for the year Source: CTWANT.

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