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.

Taiwan • Business • 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.

Key Updates

04/13 10:40

US-China Trade War Escalates: Trump Set to Announce New Tariff Policy on Semiconductors, Taiwanese Contract Manufacturers Could Benefit

Former President of the United States, Donald Trump, will announce a new semiconductor tariff policy on April 14, with tariff rates expected to exceed 20%, and may involve a national security investigation under Section 232 of the Trade Expansion Act. In response, China is adjusting its semiconductor origin rules, imposing a 125% tariff on U.S.-made chips. This move could potentially benefit Taiwanese foundries like UMC and Vanguard International Semiconductor due to the shift in orders.

04/13 10:08

Trump's tariff waiver causes market fluctuations: Yields on non-investment grade bonds turn negative, Bitcoin rebounds to $8,590, Apple products are unaffected.

On April 11, President Trump of the United States announced a tariff exemption for certain tech products and paused the reciprocal tariff policy for 90 days, which led to fluctuations in global financial markets. Yields in the U.S. non-investment grade bond market turned negative, and Bitcoin's price rebounded to $85,900. Apple Inc. avoided the pressure of high tariffs because its products were exempted. This policy adjustment provided a temporary boost to the tech and crypto asset markets, but it did not eliminate market uncertainty.

04/13 10:08

US-China Trade War: Chinese Suppliers Deny Rumors of iPhone Production Halt, US Grants Tariff Exemptions for Tech Products

On April 9, it was reported that Apple's iPhone production line in China had halted, but Chinese suppliers clarified that operations were normal and the news was a false rumor. On April 11, the U.S. Customs and Border Protection announced a tariff exemption on 20 tech products, including smartphones, offering relief to tech companies such as Apple. This move is crucial for Apple to prevent a significant increase in iPhone prices and to avoid impacting the Taiwanese tech supply chain.

04/13 09:08

Kaohsiung Mayor Chen Chi-mai suggested reducing the reserve requirement ratio in response to the US-China trade war. Premier Su Tseng-chang will initiate anti-dumping measures and discuss the matter with the central bank.

Mayor of Kaohsiung, Chen Chi-mai, suggested at an industry forum on April 13 that the central government reduce the bank deposit reserve ratio to support industries affected by the US-China trade war. Premier Su Tseng-chang stated that he would discuss this suggestion with the central bank and emphasized that Taiwan needs to guard against China's low-price dumping and "country of origin masking" issues. The government will initiate a three-tiered defense strategy to strengthen anti-dumping measures and export controls to safeguard industrial security.

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.

China Restricts Rare Earth Exports, Countering US High Tariffs

In early April 2025, China announced export restrictions on seven types of medium and heavy rare earth elements and their related compounds, including Samarium, Gadolinium, Terbium, Dysprosium, Lutetium, Scandium, and Yttrium. These rare earth elements are widely used in defense, electric vehicles, clean energy, and electronic products, serving as key raw materials for the US high-tech industry.

Additionally, as early as December 2023, China had restricted the export of rare earth processing technology and, by December 2024, banned the export of critical semiconductor elements such as Gallium, Germanium, and Antimony to the US. These measures are seen as a direct counter to the US's 145% tariff policy.

US Plans to Launch Deep-Sea Mining and Metal Reserve Program

Facing China's dominance in the rare earth supply chain, the US government is drafting an executive order to allow the mining of metal minerals on the Pacific seabed and establish a national strategic reserve. These deep-sea metal nodules are rich in nickel, cobalt, copper, and manganese, and may contain trace amounts of rare earth elements, which are crucial for the battery, military, and electronics industries.

According to the Financial Times, the reserve program will establish a large stockpile of metal nodules within the US to prepare for potential import disruptions in the event of a conflict with China. The US National Defense Authorization Act (NDAA) also requires the Department of Defense to study the feasibility of deep-sea mining and establish onshore processing capabilities. Prominent Republicans like Marco Rubio and Mike Waltz have expressed their support.

Taiwan's Supply Chain Faces Potential Risks

As a major hub of the global semiconductor industry, especially with TSMC playing a critical role in the global chip supply chain, Taiwan is facing pressure from the escalating US-China trade war. Although the US has temporarily exempted computers, smartphones, and chips from tariffs to mitigate the impact on American companies like Apple and Dell, experts point out that this is merely a temporary measure to buy time for the supply chain to move out of China, not a permanent solution.

Recently, Taiwan and the US have begun their first-ever tariff negotiations, discussing a 32% tariff and proposing zero tariffs and expanded investment plans. Nevertheless, if the US-China conflict escalates, Taiwan could become a risk focal point due to geopolitical and supply chain restructuring.

Gold Prices Surge Past $3,200, Fed Rate Cut Expectations Rise

As the trade war intensifies and the dollar weakens, market risk aversion has surged, with international gold prices breaking through $3,200 per ounce on April 10, 2025, reaching a record high of $3,245.28. Asian spot gold prices briefly hit $3,215.73, while New York futures gold prices rose to $3,244.6.

The unexpected decline in the US March CPI and core CPI data, coupled with better-than-expected initial jobless claims, has heightened market expectations for a Fed rate cut in June, further boosting gold prices. ETF inflows also indicate strong investor demand for gold, with the world's largest gold ETF, SPDR, increasing its holdings by 12.62 tons on April 10.

Brazil's Soybean Exports Benefit as China Turns to Alternative Markets

Amid the backdrop of mutual high tariffs between the US and China, China has imposed an 84% tariff on US agricultural products, leading to a setback in US soybean exports. Chinese importers have turned to Brazil for purchases, recently buying about 40 ships, totaling 2.4 million tons of soybeans. This shift continues the trend since the 2018 trade war when China began reducing its reliance on US soybeans.

According to reports, Brazil has now become China's largest soybean supplier. US farmers face shrinking markets and price pressures, with some considering switching to crops like corn and calling for government assistance.

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People Also Ask...

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