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.
Key Updates
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.
Trump Announces Temporary Suspension of Tariffs and Exemptions for Some Chinese Products
The U.S. Customs and Border Protection (CBP) announced on April 11 that products such as smartphones, laptops, hard drives, memory chips, computer processors, and semiconductor manufacturing equipment will be excluded from the originally planned 125% reciprocal tariffs and 10% standard tariffs. According to GFMResearch analysis, this exemption covers approximately $100 billion worth of imported goods from China, accounting for about 20% of China's total exports to the U.S.
CBP noted that the exemption list also includes solar cells, flat-panel displays, USB drives, AI servers, and network communication equipment, providing a direct advantage to U.S. tech companies that rely on Chinese manufacturing, such as Apple, Samsung, Nvidia, Dell, and HP. White House spokesperson Levitt stated that President Trump has made it clear that the U.S. cannot rely on China for key tech products and emphasized that companies like Apple, Nvidia, and TSMC have committed to expanding their investments in the U.S.
TSMC Accelerates U.S. Plant Construction
TSMC's plant construction project in Arizona is in full swing. The second phase of the fabrication plant is expected to begin trial production by the end of 2026, and the third phase will break ground this June, with a target to start trial production in 2027. TSMC will also initiate the construction of an advanced packaging plant, introducing CoWoS technology to further enhance its manufacturing capabilities in the U.S.
Regarding the issue of tariffs on semiconductor equipment imported to the U.S., the industry noted that related equipment has been included in the exemption list, but attention is still needed for the details of semiconductor tariffs that Trump is expected to announce next Monday. Most Taiwanese equipment is still manufactured in Taiwan and shipped under FOB terms, with tariffs borne by customers. Some companies, like Manz, are considering finding contract manufacturers in the U.S. to meet customer demands.
Semiconductor Industry Remains Vigilant, Watching for New Tariff Investigations
Although semiconductor products are currently included in the exemption list, White House officials indicated that the Trump administration will soon launch a new round of national security trade investigations on semiconductors, which may impose new tariffs on chip products and related equipment. According to Reuters, this investigation could start within weeks, and the industry remains highly vigilant.
Taiwan's Executive Yuan officials stated that the government is continuously monitoring U.S. policy trends and adjusting export supply chain support plans accordingly. Officials reminded companies to prepare in advance for currently exempted products, as they may still face other types of tariff measures in the future.
U.S. Stock Market Volatility and Bond Market Turbulence
Following Trump's announcement of tariff suspension, U.S. stocks rebounded strongly. The Dow Jones Industrial Average surged 619 points on the 11th, closing at 40,212.71 points; the S&P 500 index rose 1.8%, closing at 5,363.36 points; and the Nasdaq index increased by 2.1%, closing at 16,724.46 points. All three major indices posted their highest weekly gains in recent years, with the Nasdaq's weekly surge of 7.3% being the largest since November 2022.
However, the U.S. bond market remains under pressure. The 10-year Treasury yield briefly exceeded 4.5%, marking the largest weekly increase since 2001. The 30-year Treasury yield closed at 4.873%, the highest since mid-January. The ICE Dollar Index plummeted 2.9% within a week, falling to a three-year low, indicating shaken investor confidence in U.S. assets.
Fed Officials Speak Out Intensively, Focusing on Inflation and Economic Outlook
Amid market turmoil, several Federal Reserve (Fed) officials have made consecutive statements. Boston Fed President Collins stated that if liquidity issues arise in the market, the Fed is ready to use various tools to stabilize the market, but emphasized that emergency rate cuts are not the first choice. She predicts that this year's inflation rate will exceed 3%.
Federal Open Market Committee (FOMC) Vice Chair Williams warned that tariff policies are causing widespread uncertainty, predicting that this year's inflation rate will reach 3.5% to 4%, unemployment will rise to 4.5% to 5%, and economic growth will fall below 1%. He noted that consumer and business confidence has significantly declined, with tariffs and trade policies being the main reasons.
St. Louis Fed President Bullard also stated that the risks of rising inflation and a weak labor market coexist in the short term, and policymakers need to closely monitor economic data.
Economic Data and Corporate Earnings in Market Focus
In the coming week, the U.S. will release important economic data for March, including retail sales, industrial production, and new housing starts, which the market will closely watch for their implications on inflation and growth. Meanwhile, the earnings season is underway, with major companies like Netflix, Goldman Sachs, Bank of America, and Citigroup set to release their results.
According to FactSet data, S&P 500 companies' first-quarter profits are expected to grow by 7%, with technology and healthcare sectors growing by 14.8% and 35.8%, respectively. However, some companies may revise down their forecasts or even withdraw predictions due to tariff uncertainties, drawing significant investor attention.
