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

Taiwan • Business • 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.

Key Updates

04/13 01:06

In 2025, the US-China tariff war escalated: President Trump announced a 145% tariff, and China swiftly retaliated, impacting global supply chains.

In April 2025, the US-China trade war escalated as President Trump imposed a 145% tariff on Chinese goods, and China retaliated by raising tariffs on US goods to 125%. This tariff war impacted global supply chains, technology policies, and geopolitics. The US tried to form a tariff alliance, while China bolstered its cooperation with ASEAN and the EU. The confrontation in the tech sector intensified, leading companies to reevaluate their supply chains. Taiwan and the US initiated tariff negotiations, and other countries, such as India and Vietnam, actively sought to attract US companies to move their production bases.

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.

U.S. Tariff Policy Reversal: Electronics Exempted

According to a U.S. CBP announcement, President Trump signed Executive Order No. 14257 on April 2, initially imposing a 10% basic tariff on global imports and implementing "countervailing tariffs" ranging from 11% to 50% on specific countries, with Chinese goods facing rates as high as 125%. However, on the night of April 11, CBP released the latest guidelines exempting 20 electronic and tech products, retroactively effective from 12:01 AM (Eastern Time) on April 5.

The exemption list is extensive, covering smartphones (HTSUS 8517.13.00), laptops and servers (8471), memory modules and motherboards (8473.30), integrated circuits (8542), solid-state drives (8523.51.00), monitors (8528.52.00), and semiconductor manufacturing equipment such as lithography and etching machines (8486). These products are core components for brands like Apple and Samsung and include critical equipment needed by foundries like TSMC.

CBP noted that importers must use classification code 9903.01.32 during customs declaration and amend the declaration data within 10 days after goods are released to apply for refunds or objections.

Direct Benefits for Apple, Samsung, and TSMC

The exemption has significant implications for Apple and Samsung. According to Bloomberg, the main assembly locations for iPhone and Galaxy series phones are China and Vietnam, which would have faced tariffs as high as 125% without the exemption. With the exemption in place, both companies can avoid passing costs onto consumers, maintaining product competitiveness.

For TSMC, the impact is more strategically significant. TSMC is currently building an advanced process wafer plant in Arizona, with most semiconductor manufacturing equipment sourced from Dutch ASML and Japanese manufacturers. A 20% tariff would significantly increase construction costs. The exemption covers equipment like lithography and etching machines under item 8486, providing substantial support for TSMC's U.S. expansion plans.

Additionally, TSMC manufactures chips for U.S. tech companies like Apple, Qualcomm, and AMD. The exemption of tariffs on integrated circuits and memory chips helps maintain supply chain stability and price advantages.

U.S. Stocks Rally, Led by Tech Stocks

Boosted by the exemption news, major U.S. stock indices rose across the board on April 11. The Dow Jones Industrial Average rose 619.05 points (+1.56%) to close at 40,212.71 points; the S&P 500 Index rose 95.31 points (+1.81%) to close at 5,363.36 points; the Nasdaq Index rose 337.15 points (+2.06%) to close at 16,724.46 points. The Philadelphia Semiconductor Index surged 97.61 points (+2.51%) to close at 3,990.9 points, reflecting market optimism about the semiconductor industry.

Among them, Apple and TSMC ADRs rose by 3.2% and 4.5%, respectively, indicating positive investor sentiment about the benefits they will receive.

Taiwan Stocks Rebound Strongly, National Financial Stabilization Fund Boosts Electronics

In Taiwan, following the National Financial Stabilization Fund's announcement of its ninth intervention mission, the market rebounded strongly by 528.74 points on April 11, closing at 19,528.77 points, with a trading volume of NT$514.108 billion. The three major institutional investors combined bought a total of NT$32.647 billion, with foreign investors buying NT$30.517 billion, indicating a clear trend of capital inflow.

Electronics stocks led the rebound, with TSMC (2330) shares recovering, driving the overall semiconductor sector higher. Market analysts noted that the exemption measures alleviated concerns about rising costs for TSMC's U.S. investments and helped stabilize its supply chain and customer confidence.

Market Focus on TSMC's Earnings Conference: Three Key Topics

TSMC will hold an earnings conference on April 17, becoming the next market focus. Market analysts noted that investors will focus on three key topics:

  1. Tariff Policy Response: How TSMC assesses the impact of U.S. countervailing tariff policies on its operations and costs, especially potential future tax risks.
  2. AI Demand Outlook: How TSMC adjusts its capacity and technology layout amid growing demand for AI servers and high-performance computing.
  3. Intel Joint Venture Rumors: Market attention on whether TSMC will deepen cooperation with Intel or expand its investment scale in the U.S.

Despite recent target price cuts by three major U.S. investment banks to between NT$1,050 and NT$1,400, they still maintain a "buy" rating, indicating that TSMC's fundamentals remain attractive.

References

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