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

Taiwan • Business • 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.

Key Updates

04/12 05:08

Experts: U.S. tariff policies may result in iPhones being made in the U.S., with prices possibly soaring to NT$80,000.

On April 12, 2025, the 145% reciprocal tariff policy promoted by President Trump of the United States posed a significant challenge to Apple Inc. Oliver, an economist at AMP in Australia, pointed out that if Apple moves its iPhone production line back to the U.S., the price could skyrocket to $2,519. This policy pressures Apple to restructure its supply chain and could potentially cut its annual profit by $40 billion. Economists warn that the risk of a U.S. recession has increased to 45%. Apple is taking steps to address this, such as expanding production in India and offering installment plans.

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.

Trump's Tariff Policy U-Turn: 145% Tariff on China, 90-Day Postponement for Other Countries

On April 9, U.S. President Trump officially launched the "Reciprocal Tariffs" policy, imposing additional tariffs on countries with a trade surplus with the U.S. China was the first to be hit, facing tariffs as high as 145%. In response, China immediately retaliated by raising tariffs on U.S. goods from 84% to 125%.

Meanwhile, the Trump administration announced a 90-day postponement of reciprocal tariffs for 75 countries, including Taiwan, Japan, South Korea, and the UK, during which only a 10% base rate will be applied. White House Economic Advisor Hassett noted that if countries can propose "extraordinary" agreements, there is hope for further tariff reductions or even zero tariffs in the future.

Taiwanese Manufacturers Experience a Surge in Orders Amid Price Pressure

After Trump announced a delay on the 32% tariff for Taiwan, industries such as electronics, semiconductors, plumbing hardware, and hosiery received notifications from U.S. clients to complete shipments within 90 days. Plumbing hardware and hosiery manufacturers in the Changhua area reported that orders previously halted due to high tariffs have resumed, and they are now working full steam to fulfill shipments.

However, the benefits are accompanied by pressure. Many traditional manufacturers revealed that U.S. clients are demanding price cuts of over 10% to share the 10% tariff cost, placing a heavy burden on industries with already thin profit margins. An electronic relay manufacturer stated, "Our profit margins aren't that high; cutting prices would eat up all our profits."

Air Cargo Fully Booked, Sea Freight Market Faces Booking Frenzy

During the 90-day "tariff window," a shipping rush has emerged in the supply chains of Taiwan and Southeast Asia. Freight forwarders reported that all air cargo space has been fully booked before the weekend, and they expect overbooking situations next week.

In sea freight, shipping companies that had reduced capacity in anticipation of high tariffs are now facing a surge in booking demand. Freight rates for a 40-foot container from Asia to the U.S. West Coast have reached $2,200 to $2,400, while rates to the East Coast have hit $3,200 to $3,400. A freight forwarder commented, "It's not about watching the weather anymore; it's about watching Trump," as many companies choose to ship as much as possible to avoid another policy reversal after 90 days.

Shipping Stocks Skyrocket, SCFI Index Hits 18-Month High

Driven by the shipping rush, Taiwanese shipping stocks have risen across the board. Evergreen, Yang Ming, and Wan Hai, the three major container carriers, all hit the daily limit, while airline giants EVA Air and China Airlines also surged to the daily limit, pushing the shipping stock index up by more than 7% in a single day. The Shanghai Containerized Freight Index (SCFI) also reached 2520.76 points, the highest since September 2022.

Industry Awaits Developments After 90 Days, Orders Mostly Short-Term

Despite the surge in short-term orders, most industry players remain cautious about the policy direction after 90 days. Nien Ching-Chuan, Chairman of the Nantou Nangang Industrial Park Manufacturers Association, stated, "Currently, clients are only placing urgent orders, not annual orders for the whole year." Some industry players are concerned about the unpredictability of Trump's policies, fearing a sudden return to high tariffs, which would increase shipping risks.

References

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