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

Taiwan • Business • 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.

Key Updates

04/12 04:38

First Round of Taiwan-US Tariff Negotiations Begins: Taiwan as the Initial Focus, Focusing on Economic and Trade Barriers and Export Controls

On April 11, 2025, Taiwan and the United States commenced the first round of tariff negotiations via video conference, discussing issues such as reciprocal tariffs, non-tariff trade barriers, and export controls. The Taiwanese team was led by Executive Yuan Deputy Premier Cheng Li-chun (Lily Cheng) and Chief Negotiator Jenny Yang. Taiwan, along with Israel, was included in the first wave of negotiations by the U.S., indicating the U.S.'s acknowledgment of Taiwan's strategic importance. Both parties will continue negotiations during the 90-day tariff suspension period, with the aim of establishing a strong economic and trade relationship between Taiwan and the U.S.

04/12 03:36

The first round of the Taiwan-US tariff and trade barrier video conference is underway, with a focus on reciprocal tariffs, non-tariff barriers, and export controls.

On April 11, 2025, the trade negotiation teams from Taiwan and the United States held their first virtual meeting to discuss issues such as mutual tariffs, non-tariff barriers, and export controls. Taiwanese President Lai Ching-te highlighted Taiwan's inclusion in the U.S.'s initial negotiation list and proposed starting with "zero tariffs" as a concept. Both parties agreed to begin further consultations in the near future to enhance economic and trade cooperation between Taiwan and the U.S.

04/12 03:36

Trump's tariff policy causes an 11.2% increase in March car sales, experts warn of the risks of panic buying, Wall Street executives express opposition.

At the beginning of April, President Trump initiated a high tariff policy on imported goods, resulting in an 11.2% increase in car sales in March as consumers bought goods in advance to avoid price hikes. Experts warn that this panic buying might put pressure on household finances. Many financial leaders on Wall Street oppose the tariff policy, worrying it could slow down economic growth and trigger market volatility. Under pressure, the Trump administration has postponed the implementation of some tariffs, but the 25% tariff on goods such as cars has already taken effect, putting pressure on consumers and businesses as they face rising costs.

04/12 02:40

US-China Trade War Intensifies: Tesla Stops Selling Imported Models, Sharp Decline in Cargo Ship Bookings Disrupts the Supply Chain

The intensification of the US-China tariff war is impacting the automotive and shipping industries. Tesla in China has stopped accepting new orders for US-manufactured Model S and Model X cars and is only selling existing inventory. Shipping bookings from Chinese ports to the US have sharply decreased, with nearly no ships departing from Shanghai to the US. US ports are congested, leaving thousands of imported cars stranded, and some car manufacturers are delaying shipments to manage tariff uncertainties. This trade conflict is reshaping the operations of global automotive and logistics supply chains.

04/12 02:40

US-China Tariff War Escalates: Trump Slaps 145% Tariffs on Chinese Goods, Taiwanese Manufacturers Face Rush Orders and Pressure to Lower Prices

The US-China trade war is escalating. On April 9, President Trump announced a 145% tariff on Chinese goods and a 90-day suspension of reciprocal tariffs for 75 other countries, imposing only a 10% base tax rate. This move has caused shocks in the global supply chain, with Taiwanese manufacturers receiving a large number of urgent orders but facing pressure to reduce prices. Air freight space is fully booked, and demand for sea freight has surged, keeping logistics providers busy handling the rush. This article analyzes the impact of tariff policies on Taiwanese industries and the global logistics market.

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.

Customs System Malfunction Paralyzes Tariff Collection

On April 11, the U.S. Customs and Border Protection (CBP) issued a warning indicating a malfunction in the import codes used for tariff exemption applications within its customs system. This issue has prevented importers from submitting financial statements and exemption applications properly. The system malfunction lasted over 10 hours, affecting goods already in transit by sea, particularly those from China and other countries enjoying a 90-day tariff grace period.

According to CBP's recommendation, importers should first submit release documents for cargo separately and then submit financial documents and customs summaries once the system is restored. This means that until the system is restored, the U.S. government cannot collect tariffs on the affected goods. While this move temporarily maintains the flow of goods, it also raises industry concerns about administrative efficiency and policy execution.

Jarred Varanelli, Vice President of logistics company Savino Del Bene, pointed out that the Trump administration's executive orders and social media posts are inconsistent, making it difficult for customs brokers to understand the actual policies. He bluntly stated, "Posts are not laws, and customs brokers are fighting ever-changing rules every day."

Trump Tariff Policy Implementation Hindered

On April 2, the Trump administration announced high reciprocal tariffs on multiple countries worldwide, increasing the tariff rate on Chinese goods to 145%, while other countries faced a 10% baseline tariff. However, in response to the market's intense reaction and soaring bond yields, Trump announced on April 9 a 90-day suspension of tariffs for countries other than China.

Nevertheless, according to the "on the water clause," goods that had already set sail before the announcements on April 5, 9, and 10 could still be subject to the old tariff rates. However, the customs system malfunction has prevented these goods from successfully completing exemption applications, further exacerbating the chaos in policy implementation.

Kevin Hassett, Chairman of the White House National Economic Council, admitted that the bond market's plunge was one of the main reasons prompting Trump to suspend tariffs. The 10-year U.S. Treasury yield once surged above 5%, sparking concerns about an economic recession. Jamie Dimon, CEO of JPMorgan Chase, further warned that reciprocal tariffs could lead to an economic downturn.

Importers and SMEs Face Real Challenges

The customs system malfunction and policy uncertainty have had a substantial impact on importers. According to The Wall Street Journal, small and medium-sized enterprises (SMEs) are particularly struggling to bear the cost pressures brought by tariffs. These businesses often lack bargaining power with suppliers and have poorer cash flow, making it challenging to manage rising raw material costs and customs delays.

A survey of SMEs showed that nearly two-thirds of respondents believe tariffs will harm their companies. Customs delays, price instability, and frequent policy changes make it difficult for businesses to develop stable pricing strategies and procurement plans.

Additionally, aviation maintenance companies like HAECO have reported that some parts cannot clear customs in time due to delays, affecting maintenance schedules and operational efficiency.

Navarro Encourages Investors to Enter the Market, Emphasizes Tax Cuts and Trade Agreements

Amid market turmoil, White House trade advisor Peter Navarro publicly encouraged Americans to invest in stocks during interviews with Fox News and CNBC on April 11. He stated that the Trump administration plans to sign 90 trade agreements within 90 days and introduce the largest tax cut in U.S. history, which will be key drivers for a stock market rally.

Navarro noted, "If you haven't entered the market yet, you'll fall behind." He emphasized that this is a very favorable time for a bull market and described Trump's economic advisory team as "the strongest in history."

Regarding the recent stock market decline, Navarro downplayed its impact, stating that investors are currently only experiencing "paper losses," and as long as they don't sell, it's not a real loss. He also criticized JPMorgan Chase CEO Dimon, pointing out that his company profits handsomely during market fluctuations, and urged small investors not to be scared off by the rhetoric of large financial institutions.

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