The US imposes a 145% tariff on Chinese products: CEO of an educational toy company in Illinois faces a $100 million tariff bill.

Taiwan • Business • 04/12 12:06
The US imposes a 145% tariff on Chinese products: CEO of an educational toy company in Illinois faces a $100 million tariff bill.

In April 2025, U.S. President Donald J. Trump announced a 145% tariff on Chinese imports, which shocked American importers and manufacturers. Rick Woldenberg, CEO of Learning Resources, an educational toy company based in Illinois, stated that the cost of tariffs would skyrocket from $2.3 million in 2024 to $102 million in 2025, calling this change "doomsday." This policy led to retaliatory tariffs from China, which had a widespread impact on various U.S. industries, such as agriculture and retail.

Key Updates

04/12 15:08

China Revises Semiconductor Origin Regulations, US Temporarily Exempts Electronic Products from Tariffs: Taiwanese and American Tech Companies Experience Different Effects

In April 2025, the China Semiconductor Industry Association announced that the origin of imported integrated circuit products would be determined based on the location of wafer manufacturing, affecting major U.S. chip manufacturers like Intel. The U.S. Trump administration temporarily exempted products like smartphones and computers from reciprocal tariffs, offering short-term relief to Taiwanese companies such as TSMC. These policies have a significant impact on the Taiwanese semiconductor supply chain and American tech companies.

04/12 14:39

Taiwan's Premier Su Tseng-chang announced measures against country of origin fraud and anti-dumping, and began trade talks with the United States.

On April 12, 2025, Premier Cho Jung-tai (卓榮泰) emphasized in Hsinchu City that Taiwan will initiate actions against country of origin laundering and dumping to prevent Chinese products from being illegally transshipped through Taiwan to the United States, ensuring that "Made in Taiwan" truly means "Made in Taiwan." The first round of tariff negotiations between Taiwan and the United States began on April 11, with Taiwan being among the first countries to negotiate, indicating that bilateral cooperation has reached a substantive phase. Cho Jung-tai stated that Taiwan will strengthen export controls to protect high-tech products and increase procurement from and investment in the U.S. to maintain trade balance.

04/12 14:39

The Trump administration announced a temporary tariff exemption for 20 categories of electronic products, including products made in China.

On April 11, 2025, the U.S. Customs and Border Protection, under the directive of President Trump, announced a temporary exemption for 20 categories of electronic products, including smartphones, laptops, and semiconductors, from the reciprocal tariff policies. This exemption applies to global imports, including those from China. The exemption took effect on April 5 and will last for at least 90 days, providing short-term relief to companies such as Apple, Nvidia, and TSMC, and helping U.S. consumers avoid the pressure of rising electronic product prices.

04/12 14:07

The US-China trade tensions escalate: Juneyao Airlines delays the delivery of Boeing 787s, Taiwanese semiconductor companies benefit from new rules

In April 2025, the trade war between the US and China escalated, with retaliatory tariffs impacting the aviation and semiconductor sectors. Due to increased tariffs by the US, China's Juneyao Airlines delayed receiving Boeing 787-9 aircraft. The China Semiconductor Industry Association adjusted the rules for determining the origin of integrated circuit products, affecting the import costs of American chips and putting pressure on American companies such as Intel. Taiwanese foundries like TSMC, whose production is based in Taiwan, avoided punitive tariffs and emerged as potential beneficiaries.

04/12 14:07

The United States Waives Tariffs on Electronic Products: Apple, Samsung, and TSMC Benefit, Leading to a Rise in U.S. and Taiwan Stock Markets

On April 11, 2025, the U.S. Customs and Border Protection announced that electronic products such as smartphones, computers, semiconductors, and their manufacturing equipment have been added to the exemption list, effective retroactively as of April 5. This move eased market concerns about rising prices. This benefits tech companies such as Apple, Samsung, and TSMC. Following the announcement, stock markets in both the U.S. and Taiwan rose. The market is now focused on TSMC's earnings call scheduled for April 17, anticipating insights on tariff policies, AI demand, and U.S. investments.

04/12 12:06

The US imposes a 145% tariff on Chinese products: CEO of an educational toy company in Illinois faces a $100 million tariff bill.

In April 2025, U.S. President Donald J. Trump announced a 145% tariff on Chinese imports, which shocked American importers and manufacturers. Rick Woldenberg, CEO of Learning Resources, an educational toy company based in Illinois, stated that the cost of tariffs would skyrocket from $2.3 million in 2024 to $102 million in 2025, calling this change "doomsday." This policy led to retaliatory tariffs from China, which had a widespread impact on various U.S. industries, such as agriculture and retail.

04/12 10:08

US-China Trade War Escalates: Global Market Capitalization Loses $5 Trillion, Federal Reserve Prepares to Intervene

In April 2025, President Trump of the United States imposed a 145% tariff on Chinese goods, to which China responded with a 125% retaliatory tariff, escalating the U.S.-China trade war. This move triggered global financial market turmoil within 10 trading days, evaporating over $5 trillion in stock market value, and leading to a sell-off in U.S. Treasury bonds and the dollar. Federal Reserve officials indicated they were ready to intervene to stabilize the market, with inflation expectations soaring to their highest since 1981. The dollar index fell below 100, hitting a three-year low, reshaping global capital market confidence and order.

04/12 10:08

China's New Semiconductor Rule: 125% Tariff on U.S.-Manufactured Chips; Texas Instruments and Intel Stocks Fall.

On April 11, 2025, the China Semiconductor Industry Association issued a notice stipulating that the origin of imported chips will be determined by where the wafers are fabricated, impacting the range of the 125% tariff on U.S.-made chips. This policy caused a drop in the stock prices of American companies like Texas Instruments and Intel, with Texas Instruments closing 6.8% lower and Intel 3.7% lower. The new regulation significantly impacts the global semiconductor supply chain and trade dynamics.

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.

Specifics of the Trump Administration's Tariff Policy

On April 2, during the "Make America Rich Again" event held in the White House Rose Garden, the Trump administration officially announced a 145% tariff on Chinese goods. This rate was increased from the previous 125%, including a 20% surcharge previously imposed due to issues related to fentanyl and illegal immigration. According to the executive order released by the White House, these tariffs officially took effect at midnight on April 5.

At the same time, the Trump administration's "reciprocal tariffs" on other countries were postponed for 90 days, with comprehensive tariffs only imposed on China. China immediately retaliated by raising tariffs on American goods from 84% to 125%, covering multiple sectors such as agricultural products, auto parts, and consumer goods.

Shock and Response from Importers

For American companies relying on the Chinese supply chain, this policy hit suddenly and forcefully. Rick Woldenberg, CEO of Learning Resources, is one of the most notable victims. His company specializes in educational toys, such as Botley robots and Kanoodle brain challenge games, with about 60% of its products manufactured in China.

"I thought I was smart, preparing for a 40% situation when Trump announced a 20% tariff," Woldenberg said. "But I never expected it to be 145%. This made all my products economically unfeasible overnight."

Learning Resources owns about 10,000 molds, weighing over 5 million pounds in total, all set up in Chinese factories. These molds cannot be easily transferred, meaning the company faces not only high tariffs but also the potential loss of production tools if Chinese suppliers go bankrupt.

"This isn't something you can just pack up in a canvas bag and take away," he said. "There isn't an idle manufacturing center in the U.S. waiting for me to bring these molds over for production."

The Dilemma of American Manufacturing

Trump has called for companies to move manufacturing back to the U.S., but for Woldenberg, this is almost an impossible task. He stated that he has been searching for American manufacturers to collaborate with for years, but to no avail.

"I can't find any American company willing to cooperate," he said. "It's a total joke."

Similar dilemmas are faced by other companies. Marc Rosenberg, founder of The Edge Desk in Illinois, originally planned to produce high-end ergonomic chairs in China but was forced to delay production after the tariff announcement and is considering shifting to the German and Italian markets. He attempted to find manufacturers in Michigan but found a lack of skilled workers and willingness, with costs 25% to 30% higher.

Broad Industry Impact

According to David French, Senior Vice President of the National Retail Federation, this wave of tariffs could have "catastrophic consequences" on multiple levels. American companies have relied on the Chinese supply chain for years, ranging from strollers and artificial flowers to fireworks and children's coloring books. According to Macquarie Bank data, China supplies 97% of strollers, 96% of artificial flowers and umbrellas, 95% of fireworks, 93% of children's coloring books, and 90% of combs to the U.S.

Isaac Larian, founder of MGA Entertainment, stated that 65% of his company's products come from China, expected to drop to 40% by the end of the year. However, he still worries that Trump might impose tariffs on alternative markets like India, Vietnam, and Cambodia.

"No business can operate under such uncertainty," Larian said. He estimated that the price of Bratz dolls would rise from $15 to $40, and L.O.L. dolls could double to $20.

Agriculture and Retail Also Hit

In addition to manufacturing, agriculture and retail are also feeling the strain. China's 125% tariff on American agricultural products has farmers like John Pihl in Illinois worried about the dual impact on farm equipment parts and export markets.

American companies have also started stockpiling inventory to cope with future uncertainties. Michael Strain, Director of Economic Policy Studies at the American Enterprise Institute, stated that retailers will bear the brunt, while farmers will face the greatest pressure from China's retaliatory tariffs.

Overview of Tariff Structure and Data

  • Total U.S. tariff on Chinese goods: 145%
    • Includes a 20% surcharge previously imposed due to fentanyl and illegal immigration
  • China's retaliatory tariff on American goods: 125%
  • U.S. tariffs on other countries: postponed for 90 days, only a 10% baseline rate imposed
  • Affected industries: toys, retail, agriculture, auto parts, steel and aluminum products, etc.
  • Learning Resources tariff cost: soared from $2.3 million in 2024 to $102 million in 2025

References

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