Escalation of the US-China Trade War: Taiwan's Electronics and Semiconductor Industries Benefit from the 145% US Tariff on Chinese Goods, Resulting in a Surge of Urgent Orders

Taiwan • Business • 04/11 16:39
Escalation of the US-China Trade War: Taiwan's Electronics and Semiconductor Industries Benefit from the 145% US Tariff on Chinese Goods, Resulting in a Surge of Urgent Orders

On April 9, 2025, President Trump of the United States announced a 145% tariff on Chinese imports, while postponing high tariffs on other countries for 90 days. This decision caused turmoil in global markets, benefiting Taiwan's electronics and semiconductor sectors as urgent orders from the U.S. surged. The Taiwanese government swiftly responded by starting tariff negotiations with the U.S. and emphasized strengthening regulations to prevent "country of origin" fraud, to ensure the industry's long-term development.

Key Updates

04/12 01:08

US customs system malfunction impacts importers; Navarro urges market confidence as the Trump administration's tariff policy is facing challenges.

On April 11, 2025, the U.S. Customs and Border Protection's customs declaration system malfunctioned, preventing importers from using duty exemption codes, affecting goods from multiple countries and products from China subject to high tariffs. This issue occurred during the period when the Trump administration's new tariff policy was being implemented, exacerbating supply chain disruptions. White House trade advisor Peter Navarro urged investors to enter the market, stating that the tax cut plan and trade agreements would boost a stock market recovery.

04/11 22:39

U.S.-China Trade War Heats Up: Trump Announces 90-Day Tariff Delay, Causing Volatility in Taiwan and U.S. Stock Markets

On April 9, President Trump of the United States announced a 90-day suspension of high tariffs for most trade partners, imposing only a 10% baseline tariff. However, tariffs on Chinese goods were raised to 145%, escalating tensions in the U.S.-China trade war. This move caused turmoil in global financial markets, leading to significant drops in both U.S. and Taiwanese stock markets. Officials from the Federal Reserve pledged to stabilize the markets, and the House of Representatives passed a budget resolution paving the way for extending tax cuts, which raised concerns about fiscal stability. The Taiwanese government launched an 88 billion NT export support plan to address potential threats.

04/11 19:36

2025 U.S. Tariff Surge: Small and Medium-sized Businesses Feeling the Strain, Graduates Confronting Challenges

In April 2025, President Trump of the United States imposed a 145% tariff increase on Chinese goods and maintained a 10% tariff on goods from most trade partners, causing global market fluctuations, a decline in U.S. stock markets, and a spike in gold prices. Import costs for U.S. small and medium-sized businesses rose, intensifying supply chain pressures. However, experts believe a repeat of the 2008 financial crisis is unlikely in the near term. Recent graduates, facing an uncertain job market, demonstrate readiness and adaptability, actively tackling challenges.

04/11 18:08

The 2025 Trump Tariff Policy Initiates a Global Trade War: the Global Economy and Markets Severely Impacted

In April 2025, the global tariff policy of U.S. President Trump triggered a full-scale trade war, significantly impacting the global economy, financial markets, business operations, and consumers' lives. The U.S. and China imposed high tariffs on one another, and the EU, along with other countries, took retaliatory measures, resulting in business shutdowns, stock market volatility, and increased demand for precious metals. This policy reshaped the global economic and trade order and triggered international negotiations and created policy uncertainty.

04/11 16:39

Taiwan Semiconductor Manufacturing Company and Gigabyte Technology expand their operations in the US to counter the US tariff challenges, while Vanguard International Semiconductor Corporation remains focused on the Asian market.

Taiwanese semiconductor and electronics companies are adjusting their global strategies in response to potential high reciprocal duties from the United States. TSMC and Gigabyte have set up plants in the U.S. to strengthen local production; UMC is rumored to be a target for acquisition, attracting attention; Vanguard International Semiconductor has declined to establish a plant in the U.S. and is instead expanding in Singapore. These actions demonstrate the varied strategies of Taiwanese companies in navigating tariff uncertainties.

04/11 16:39

Escalation of the US-China Trade War: Taiwan's Electronics and Semiconductor Industries Benefit from the 145% US Tariff on Chinese Goods, Resulting in a Surge of Urgent Orders

On April 9, 2025, President Trump of the United States announced a 145% tariff on Chinese imports, while postponing high tariffs on other countries for 90 days. This decision caused turmoil in global markets, benefiting Taiwan's electronics and semiconductor sectors as urgent orders from the U.S. surged. The Taiwanese government swiftly responded by starting tariff negotiations with the U.S. and emphasized strengthening regulations to prevent "country of origin" fraud, to ensure the industry's long-term development.

04/11 14:09

Trump's Tariff Policies Spark Global Economic Shockwaves: U.S. Retirement Funds Suffer a $169 Billion Loss, European Central Bank Gears Up, Taiwan-U.S. Tariff Talks Kick Off

On April 2, President Donald Trump announced the implementation of a "reciprocal tariff policy" on 180 countries worldwide, resulting in a $169 billion loss for the top 25 state and local retirement funds in the U.S. within four trading days. The European Central Bank is preparing to tackle financial instability, and the EU forecasts that if the tariffs continue, the U.S. GDP will decrease by 3.3% before 2027. The U.S. has begun tariff negotiations with countries, including Taiwan and Israel. Taiwan is facing a 32% tariff impact and has proposed an industry support plan valued at 8.8 billion New Taiwan dollars.

04/11 13:09

Wells Fargo's first quarter profit surpassed expectations, CEO warns of potential economic impact of tariff risk in 2025.

Wells Fargo, the fourth-largest bank in the United States, announced its first-quarter earnings report on April 11, 2025, with a net profit of $4.89 billion, a 6% increase from the previous year, and earnings per share (EPS) of $1.39, exceeding the market expectation of $1.24. CEO Charlie Scharf warned that the U.S. government's recent tariff increases could hinder economic growth and stated that the bank is prepared for an economic slowdown in 2025. This statement dampened the optimistic sentiment in the banking industry, resulting in Wells Fargo's stock price rising only 1% on the day the earnings report was released.

04/11 12:39

Trump's 90-day tariff postponement did not stabilize the markets: the Asian stocks decline, the gold prices reach a new high, the yen soars to a two-year high

On April 9, President Donald Trump announced a 90-day suspension of higher tariffs on 75 countries, excluding China, in an effort to ease trade tensions, but this move failed to boost market confidence. Asian stock markets briefly rebounded but then fell back, with the Nikkei 225 index plunging 5.4%. The safe-haven sentiment drove gold prices to a record high, and the yen reached a two-year high against the dollar. Concerns about the escalating U.S.-China trade war persist, leading to funds flowing into safe-haven assets.

04/11 11:10

The United States' imposition of a 25% tariff on imported cars has shaken the global automotive industry, leading governments and companies around the world to respond actively.

On April 3, 2025, President Trump of the United States imposed a 25% tariff on all imported cars and components, causing a global upheaval in the automotive industry. The American automotive industry strongly opposed this decision, citing concerns over supply chain disruptions and increased costs. South Korea initiated an 11 trillion won support plan to stabilize its exports, Swiss companies pursued diplomatic efforts to lessen the impact, and Taiwan was placed on the U.S. list for postponed reciprocal tariff negotiations, beginning talks. This policy is reshaping the global automotive trade landscape.

US Imposes 145% Tariff on China, Global Supply Chain Reshuffle

On April 9, 2025, US President Trump announced a total tariff of 145% on Chinese imports, including the existing 20% and an additional 125%. This move is part of the US "reciprocal tariff" policy aimed at reducing the trade deficit with China. Meanwhile, the Trump administration has delayed imposing high tariffs on other countries for 90 days, maintaining only a 10% base rate.

China immediately retaliated by raising tariffs on US goods from 84% to 125%, stating that under the current rates, US goods are no longer viable in the market, and if the US imposes further tariffs, China will not respond. This escalation in the trade war is putting pressure on the global supply chain to reshuffle.

Taiwan's Electronics and Semiconductor Industries Benefit Short-term, Rush Orders Flood In

With high tariffs on Chinese goods, Taiwan's electronics and semiconductor industries have become the top choice for US companies seeking alternative suppliers. Former Democratic Progressive Party Taoyuan City Councilor Wang Haoyu stated on the social media platform Threads that Taiwan's tariffs on the US have dropped from 34% to 10%, while China's have soared to 145%, giving Taiwan a significant competitive advantage.

Wang Haoyu revealed that several Taiwanese electronics and semiconductor companies have recently received a sudden influx of rush orders, with a requirement for delivery within 90 days. These orders mainly come from US companies intending to stock up before the tariff policy takes effect. Although this wave of rush orders brings short-term benefits to Taiwan, it also raises concerns about future developments in the industry.

Government Initiates Response Mechanism, Begins Negotiations with the US

In response to the sudden shift in orders and potential risks, President William Lai confirmed on April 11 that Taiwan has been listed as the first target for tariff negotiations by the US. Lai stated that the government will fully respond to ensure national interests and the future development of industries. He emphasized that regarding the "country of origin" issue, the US has repeatedly raised requests, and Taiwan will address the challenge directly by enhancing relevant regulations and mechanisms.

Minister of Economic Affairs Kuo Tzu-hui also pointed out that Taiwan is expected to increase its procurement from the US by $200 billion over the next decade and expand liquefied natural gas (LNG) imports as one of the bargaining chips. Foreign Minister Joseph Wu expressed hope to reach a consensus with the US within 90 days.

Risks for Taiwanese Businesses and Supply Chain Persist, SEF Steps In to Assist

Although local Taiwanese companies benefit from the shift in orders, some Taiwanese businesses still have factories in China and may be indirectly affected by the US-China tariff war. SEF Secretary-General Lee Bao-wen noted that the operational pressure on Taiwanese businesses in China cannot be avoided, and the SEF has instructed the Economic and Trade Office to promptly understand the current situation of Taiwanese businesses and coordinate with the government to provide necessary assistance.

Lee Bao-wen also mentioned that the proportion of Taiwanese investment in China has dropped from a peak of 80% in 2010 to below 10% in 2024, indicating a long-term trend of relocation. The SEF will continue to assist Taiwanese businesses in repositioning through seminars and visits.

Industry Reaction: Short-term Gains, Long-term Caution Needed

While the influx of rush orders brings short-term benefits to Taiwan's electronics and semiconductor industries, the industry generally believes that this surge in orders may be temporary. Some netizens and analysts warn that if US policy changes again after 90 days, orders may quickly decline. Additionally, if Taiwanese products involve Chinese manufacturing components, they may face risks of "country of origin" tax audits.

According to data compiled by 104 Job Bank, industries with a high proportion of exports to the US, such as information and communication products (52%), electronic components (13.4%), and mechanical parts (1.0%), may be affected by changes in US tariff policy. The Machinery Association also calls on the government to assist industries in establishing independent supply chains and strengthen local manufacturing capabilities.

References

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