Trump delays tariffs on 75 countries for 90 days: Apple stock rebounds, Largan Precision considers establishing factories overseas

Taiwan • Business • 04/13 03:36
Trump delays tariffs on 75 countries for 90 days: Apple stock rebounds, Largan Precision considers establishing factories overseas

On April 9, President Trump of the United States announced a 90-day temporary suspension of reciprocal tariffs on 75 countries and reduced the tariff rate to 10%, bringing temporary relief to the global tech industry. As a result, Apple's stock price rebounded, and its market value increased by over $400 billion, though it still faces challenges with its supply chain in China. Lin En-ping, the CEO of Taiwan's Largan Precision, stated that the company does not directly export to the U.S., so the impact of the tariffs is limited, and they are considering the possibility of establishing overseas factories, requiring customers to share the costs.

Key Updates

04/13 09:08

U.S. President Trump Levies 25% Tariff on Imported Vehicles: Automotive Industry Confronts Rising Costs and Layoff Threats

On April 3, 2025, President Trump of the United States imposed a 25% tariff on all imported cars, resulting in an additional cost burden of $108 billion on the U.S. automotive industry. Car prices are expected to increase by $2,000 to $6,000, with some models experiencing increases of up to 15%. Automakers have started layoffs, salary freezes, and adjustments to production strategies. This policy has a particularly severe impact on automotive hubs such as Michigan and disrupts the functioning of the North American Free Trade Agreement.

04/13 08:37

In 2025, the US-China trade war escalated: China restricts rare earth exports, the US begins deep-sea mining operations, Taiwan's supply chain comes under pressure, gold prices skyrocket, and Brazilian soybean exports see gains.

In April 2025, the US-China trade war intensified as China imposed export controls on several rare earth elements in retaliation for the US's 145% tariffs. U.S. President Trump plans to launch deep-sea mining and metal reserve initiatives to reduce dependence on Chinese rare earths. Taiwan's semiconductor supply chain faces risks. Market aversion to risk has driven gold prices up to $3,200 per ounce, and expectations for a Federal Reserve interest rate cut have risen. China has shifted to purchasing soybeans from Brazil, benefiting Brazilian exports.

04/13 07:36

China's New Semiconductor Policy: TSMC Exempt from 125% Tariff, U.S. Companies, Including Intel, Face Export Pressure

In April of 2025, the General Administration of Customs of China and the China Semiconductor Industry Association issued new regulations defining the origin of imported chips based on where the wafers are manufactured. This policy exempts chips produced by Taiwanese companies like TSMC and UMC from a 125% tariff, while American companies like Intel and Texas Instruments are under pressure from increased export costs. This move changes the tariff structure of the global semiconductor supply chain, leading companies to rethink their supply chain strategies.

04/13 07:08

Trump's Tariff Policy Hits Apple: iPhone Costs Skyrocket, Stock Price Drops 15% Before Receiving Temporary Exemption

In early April 2025, President Trump of the United States imposed a 145% punitive tariff on Chinese goods, while the majority of countries worldwide imposed an additional 10% basic tariff. Apple faced cost pressures since 90% of iPhones are manufactured in China. Analysts estimated that if the iPhone production line were relocated to the U.S., the price could skyrocket to $3,000. Apple's stock price fell by 15%, resulting in a $500 billion loss in market value. On April 11, the Trump administration announced a temporary tariff exemption for products including smartphones, offering Apple short-term relief.

04/13 06:08

Trump delays retaliatory tariffs for 90 days, exempts Chinese tech products worth tens of billions of dollars, TSMC speeds up its expansion in the U.S., U.S. stock market fluctuates.

On April 11, President Trump announced a 90-day suspension of reciprocal tariffs with multiple countries and exempted tariffs on certain Chinese electronic products exported to the United States, with a total value of approximately $100 billion, including smartphones and laptops. This move benefits tech companies like Apple and Nvidia. TSMC is accelerating its construction progress in Arizona. The US stock market experienced significant fluctuations following the news, with Federal Reserve officials emphasizing the impact of tariff policies on the economy and stating they will act as necessary.

04/13 03:36

Trump delays tariffs on 75 countries for 90 days: Apple stock rebounds, Largan Precision considers establishing factories overseas

On April 9, President Trump of the United States announced a 90-day temporary suspension of reciprocal tariffs on 75 countries and reduced the tariff rate to 10%, bringing temporary relief to the global tech industry. As a result, Apple's stock price rebounded, and its market value increased by over $400 billion, though it still faces challenges with its supply chain in China. Lin En-ping, the CEO of Taiwan's Largan Precision, stated that the company does not directly export to the U.S., so the impact of the tariffs is limited, and they are considering the possibility of establishing overseas factories, requiring customers to share the costs.

04/13 03:08

The New US Tariff Policy of 2025 Sparks Global Trade Disruption: Companies Restructure Supply Chains to Adapt to Trump's Policies

In April 2025, President Trump of the United States announced a new round of "reciprocal tariffs" policies, imposing a 125% tariff on goods from China and a 10% base tariff on goods from other countries. Smartphones and laptops were exempted, but the policy still had a severe impact on the global supply chain. Companies faced challenges such as rising tariff costs and the complexity of determining the origin of goods, prompting them to reorganize their supply chains and adjust their resource allocation to cope with the uncertain trade environment.

04/13 02:07

In 2025, the US-China trade war escalated: President Trump announced high tariffs, putting pressure on the US stock market and government bonds, and Mexico became a safe haven for foreign investment.

In April 2025, the US-China trade war escalated as President Trump imposed a 145% tariff on Chinese goods, and China retaliated with a 125% tariff on US goods. Despite Trump temporarily suspending reciprocal tariffs against other countries for 90 days on April 9, global markets were in turmoil, with the US stock market losing $18 trillion in market value and Treasury yields spiking. China reduced its holdings of US Treasury securities to $706.8 billion, and gold prices reached a record high. Thanks to the USMCA, Mexico became the top choice for foreign investment in relocating production capacity, especially benefiting the automotive industry with favorable US tariffs.

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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.

Trump's Tariff Policy U-Turn: Tariffs on 75 Countries Temporarily Suspended

On April 2, U.S. President Trump announced the implementation of a "reciprocal tariff" on multiple countries worldwide, with rates as high as 40%, causing significant market turmoil globally. However, just a week later, on April 9, Trump suddenly announced a 90-day suspension of reciprocal tariffs on 75 countries, with a unified base tax rate of 10%. The U.S. Customs and Border Protection (CBP) released an exemption list on April 11, covering 20 technology products such as computers, smartphones, and semiconductor equipment, retroactively effective from midnight on April 5.

This policy adjustment is seen as the Trump administration's response to market pressure. Senior financial analyst Ruan Muhua pointed out that although a 10% tax rate will still squeeze corporate profit margins, it is a significant concession compared to the original rate of up to 145%. He candidly stated, "Trump is tough, but even he has to face reality."

Apple's Stock Rebounds Strongly, But Challenges in China Remain

Apple Inc. is one of the major beneficiaries of this exemption policy. Since smartphones and computers are excluded from reciprocal tariffs, Apple's stock has been rebounding since April 9, with a single-day increase of 4.1%, and its market value has risen by over $400 billion. According to Wedbush Securities analysis, the market generally expects Apple to receive more exemptions, which has become a key factor supporting its stock price.

However, Apple still faces significant challenges in the Chinese market. According to The Wall Street Journal, about 80% of iPhones are still manufactured in China, and if high tariff policies are fully implemented, Apple may need to raise prices to maintain gross margins. Analysts estimate that if prices are not adjusted, Apple's gross margin will decrease by about 8.5% to 9%.

To address these risks, Apple is speeding up the diversification of its supply chain. Foxconn's Indian subsidiary recently announced a $32.258 million investment to expand capacity, aligning with Apple's strategy to export more iPhones from India to the U.S. Tianfeng Securities analyst Ming-Chi Kuo estimates that by 2025, at least 15% of global iPhones will be manufactured in India, up from 10% to 12% in 2024.

Largan Precision: Limited Tariff Impact Due to No Direct U.S. Shipments

As a crucial part of Apple's supply chain, Taiwan's optical lens giant Largan Precision held its first-quarter earnings call on April 10, responding to tariff issues. CEO Lin Enping stated that Largan currently does not directly ship to the U.S., so the U.S. tariff policy has no direct impact on the company's operations.

Lin Enping noted that customers have not asked for changes in shipping locations or prices, and the company maintains its original pricing strategy. He admitted, "April is worse than March, and May is worse than April," but the third quarter is expected to see new projects due to the demand for upgraded phone lenses. The company has the capability for mass production of high-difficulty lenses, maintaining a competitive edge.

Evaluating Overseas Manufacturing: Customer Cost Sharing is Crucial

Regarding whether to consider overseas manufacturing to address potential future tariff risks, Lin Enping stated that the company is indeed discussing related possibilities with customers, but production costs in other countries are generally higher. Without customer support in sharing costs, progress is limited.

"Unless customers are willing to help absorb some costs, the economic benefits of overseas manufacturing are not high," Lin Enping said. He also emphasized that the company will continue to monitor the impact of geopolitical changes on end demand and adjust strategies accordingly.

Pressure in the Chinese Market Unresolved: Apple and Supply Chain Still Need to Cope

Although the U.S. has temporarily suspended high tariffs on multiple countries, China remains the only country not exempted. The Trump administration's total tariff rate on Chinese goods has reached 145%, while China has retaliated with a 125% tariff on U.S. goods. Apple's sales and production in China are thus under dual pressure.

According to The Economist, Apple's market share and brand image in China are under pressure, and if U.S.-China trade tensions continue to escalate, Apple's performance in the world's second-largest market may further decline. Analysts point out that Apple needs to strike a balance between reducing supply chain costs and maintaining end prices to stabilize its global market share.

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