President Trump of the United States delays reciprocal tariffs by 90 days: begins trade talks with Taiwan and 15 other countries, with the goal of reaching 90 agreements.

Taiwan • Business • 04/12 05:08
President Trump of the United States delays reciprocal tariffs by 90 days: begins trade talks with Taiwan and 15 other countries, with the goal of reaching 90 agreements.

On April 9, 2025, President Trump of the United States announced a 90-day pause on high reciprocal tariffs for most trade partners, excluding China, imposing only a 10% standard tariff rate. This decision was made in response to the willingness of 75 countries to negotiate. The Trump administration aims to finalize 90 trade agreements during this period, with Taiwan being part of the first round of negotiations, and a video conference with the United States set for April 11. Even though China is not on the suspension list, Trump remains optimistic about negotiating an agreement with China.

Key Updates

04/12 07:37

Trump's equal tariff policy may cause the iPhone 16 Pro price to soar to NT$80,000, and experts warn that the risk of a U.S. economic recession has risen to 45%.

President Trump's "reciprocal tariffs" policy imposes a 145% tariff on imports from China, which could lead to the price of the Apple iPhone 16 Pro skyrocketing to NT$80,000. This policy has already had an impact on global supply chains and consumer markets, leading financial institutions like JPMorgan to warn about the risk of a U.S. economic recession, estimating a 45% probability. This article examines the policy's impact and expert opinions, highlighting the potential effects of tariffs on the U.S. economy and the prices of consumer electronics.

04/12 07:37

US-China Chip Tariff Dispute Escalates: Imposition of High Tariffs by 2025 Causes Global Market Turmoil and Price Hikes

In April 2025, President Trump of the United States imposed a 145% tariff on chips imported from China, and China countered with a 125% tariff on chips from the United States, leading to upheaval in the global semiconductor market. The prices of Chinese chips skyrocketed, resulting in a wave of panic buying, and many distributors halted price quotations. China's new regulation regards the wafer fabrication site as the place of origin, affecting U.S. manufacturers such as Intel and forcing companies to reevaluate their supply chain arrangements.

04/12 06:39

Escalation in the US-China Trade War: US Imposes 145% Tariff on Chinese Goods, China Retaliates with a 125% Tariff, Global Markets in Turmoil

On April 12, 2025, the US-China trade war intensified, with the US imposing a total tariff rate of 145% on Chinese products, and China retaliating with a 125% rate. This led to disruptions in global supply chains and financial markets. Taiwanese manufacturers experienced a surge in orders, air freight space was fully booked, and the Taiwan stock market experienced significant volatility. The US temporarily suspended reciprocal tariffs for 90 days on 75 countries, with Taiwan included in the first round of negotiations, requiring only a 10% tariff rate, prompting Taiwanese electronics and semiconductor companies to speed up shipments.

04/12 06:39

Trump's announcement of high tariffs has led to an escalation in the US-China trade war, causing volatility in global stock markets, resulting in Taiwan's stock market experiencing its largest drop in history.

In April 2025, President Trump of the United States imposed a 145% tariff on Chinese goods, and China retaliated by raising tariffs on American goods to 125%, escalating the U.S.-China trade war. Global stock markets were severely shaken, with Taiwan's stock market experiencing its largest single-day drop. Trump imposed a 32% tariff on Taiwanese goods, dealing a severe blow to exports, prompting the government to launch an NT$88 billion support plan. The U.S. dollar depreciated amid risk aversion, hitting new lows against the euro, yen, and Swiss franc. Taiwanese companies faced pressure to redirect orders and relocate production.

04/12 06:07

In 2025, the US-China tariff war heats up: India could be the winner, Taiwanese stocks soar, and Taiwanese businesses in Vietnam are under pressure.

In April 2025, the US-China trade war intensified as President Trump imposed a 145% tariff on Chinese goods, and China retaliated by raising its tariffs to 125%. This move caused global market turmoil and led to a conservative outlook for the US economy. Expectations for a Federal Reserve rate cut increased, which benefited long-term bonds. China initiated a plan to shift exports to domestic sales, and Taiwan's stock market rebounded thanks to the intervention of the National Stabilization Fund and favorable trade negotiations. Taiwanese businesses in Vietnam faced pressure from a 46% tariff and actively engaged in negotiations to adjust their strategies. India, with its low export dependency and flexible policies, was considered a potential beneficiary.

04/12 05:08

President Trump of the United States delays reciprocal tariffs by 90 days: begins trade talks with Taiwan and 15 other countries, with the goal of reaching 90 agreements.

On April 9, 2025, President Trump of the United States announced a 90-day pause on high reciprocal tariffs for most trade partners, excluding China, imposing only a 10% standard tariff rate. This decision was made in response to the willingness of 75 countries to negotiate. The Trump administration aims to finalize 90 trade agreements during this period, with Taiwan being part of the first round of negotiations, and a video conference with the United States set for April 11. Even though China is not on the suspension list, Trump remains optimistic about negotiating an agreement with China.

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.

Background of the Reciprocal Tariffs Policy and Suspension Decision

On April 2nd, 2025, the Trump administration officially announced the implementation of the "Reciprocal Tariffs" policy on most of its global trade partners, stating that if other countries impose high tariffs on American goods, the U.S. will reciprocate with equivalent tariffs. This move aims to correct the long-standing U.S. trade deficit and promote the return of domestic manufacturing. According to the U.S. Trade Representative (USTR), these tariffs are calculated based on bilateral trade deficits, with Taiwan facing a 32% tariff, Vietnam 46%, China 34%, and the EU 20%.

However, after the policy took effect on April 9, global markets experienced severe turbulence, with the Dow Jones Industrial Average losing over $6 trillion in market value within two days. In response to negotiation requests from 75 countries and goodwill gestures of not taking retaliatory actions, Trump unexpectedly announced that afternoon a 90-day suspension of high tariffs for all countries except China, imposing only a 10% baseline rate, effective immediately.

Goal to Achieve 90 Agreements in 90 Days

White House trade advisor Peter Navarro stated that the Trump administration aims to complete 90 trade agreements within 90 days, aiming for an average of one per day. U.S. Trade Representative Jamieson Greer confirmed that over 15 countries have formally submitted tariff agreement proposals to the U.S. and have begun preliminary negotiations.

In an interview while en route to Florida on Air Force One, Trump stated, "10% is our tariff floor, that's our baseline, but there may be a few obvious exceptions." He did not specify which countries or conditions might be exceptions but emphasized that the U.S. is currently in a favorable negotiating position.

Taiwan and the U.S. Begin First Round of Negotiations

Taiwan was included in the first round of negotiations and held a video conference with the U.S. on April 11. The Executive Yuan's Office of Trade Negotiations confirmed that both sides exchanged views on several issues, including reciprocal tariffs, non-tariff trade barriers, and export controls. Foreign Minister Lin Chia-lung stated that Taiwan and the U.S. are actively exchanging information, and the U.S. has requested more details from Taiwan to advance the negotiations.

According to reports, Taiwan is considering reducing tariffs or removing non-tariff barriers on U.S. automobiles, pharmaceuticals, and agricultural products in exchange for the U.S. lowering its 32% tariff rate on Taiwan. The Executive Yuan has also approved an NT$880 billion "Export Supply Chain Support Program" to help industries affected by the tariff adjustments.

Tariff Floor and Exception Clauses

Trump explicitly stated that 10% is the "minimum" for reciprocal tariffs, but there may be "a few obvious exceptions." The list of exception countries has not yet been announced, but according to the U.S. Treasury and USTR, some Canadian and Mexican goods (such as energy and potash) have already received preferential rates below 10%, indicating that exception clauses may be based on geopolitical, supply chain dependency, or strategic considerations.

Currently, the U.S. imposes a 10% baseline rate on 125 countries, and for 60 countries, including Taiwan, the EU, Japan, and South Korea, which were originally subject to higher rates, the tariffs have also been suspended to 10%. China remains the only major trade partner not included in the suspension list.

Tariffs on China Remain at 145%, U.S. Remains Optimistic

Unlike other countries, the U.S. has not only not suspended tariffs on China but has increased them to 125% as of April 9, in addition to a prior 20% tariff on fentanyl, bringing the total rate to 145%. This move is in response to China's 125% retaliatory tariffs on U.S. goods and sanctions on 18 U.S. defense companies.

Despite the escalating U.S.-China trade war, White House spokesperson Karoline Leavitt stated that Trump remains "open and optimistic" about reaching an agreement with China. She noted, "The President will be very lenient if China is willing to reach an agreement with the U.S. If China continues to take retaliatory actions, it will not be beneficial for China."

China, however, emphasized its willingness to engage in dialogue based on "mutual respect and equality," but strongly opposed the U.S.'s "maximum pressure" and "bullying behavior," and has filed a complaint with the World Trade Organization (WTO).

References

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