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

Taiwan • Business • 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.

Key Updates

04/13 14:39

Premier Cho Jung-tai held talks with edamame producers in Pingtung: In response to the competitive pressure from China redirecting exports to Japan, the government is launching an 88 billion NT dollar support plan.

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Trump's Tariff Policy for 2025 Deals a Major Blow to Apple: iPhone Prices Could Skyrocket, Supply Chain Moves to India, Stock Value Drops by Over $1 Trillion

In early April 2025, President Trump of the United States imposed a 145% tariff on imports from China, which had a significant impact on Apple Inc. Since 90% of its iPhone production is concentrated in China, Apple faced significant tariff pressure and considered relocating part of its production to India. On April 11, the Trump administration announced a temporary exemption from tariffs for electronic products, including smartphones, but by then, Apple's stock price had already fallen by 27%, and its market value had shrunk by over $1 trillion. This article examines the effects of the trade war on Apple, including changes in pricing, supply chain adjustments, and market reactions.

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

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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.

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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

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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.

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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.

iPhone Production Line Shutdown Rumors in China Cause Market Turmoil

On April 12, Ming-Chi Kuo, an analyst at TF International Securities, posted on social media platform X that Apple's iPhone assembly line in China had stopped production since April 9 and had not yet resumed, drawing significant market attention. Kuo believes that whether the production line resumes operations could be an indicator of whether the U.S. will temporarily remove retaliatory tariffs on China.

However, the news was quickly denied by Chinese supply chain manufacturers. According to the Daily Economic News, several Chinese media outlets cited suppliers in the afternoon, emphasizing that the iPhone production line in China "has not stopped," and called Kuo's statement "purely a rumor."

Chinese Suppliers Quickly Clarify: Production Line Operating Normally

In response to the shutdown rumors, Chinese manufacturers in the iPhone supply chain quickly responded. According to reports from the United Daily News and the Daily Economic News, suppliers clearly stated that the production line is currently operating normally, with no shutdowns. This clarification helps stabilize market sentiment, especially against the backdrop of rising U.S.-China trade tensions.

Additionally, industry experts pointed out that although there are ongoing rumors about the iPhone production line moving to India or Vietnam, China remains Apple's primary production base. According to Wedbush Securities analyst Dan Ives, about 90% of iPhones are still produced and assembled in China.

CBP Announces Tariff Exemption for 20 Tech Products

Regarding tariff policies, the U.S. Customs and Border Protection (CBP) announced on the evening of April 11 Eastern Time that, based on Presidential Executive Order 14257 and its subsequent amendments, starting April 5, 20 tech products will no longer be subject to the reciprocal tariffs announced on April 2. These products include smartphones, computers, semiconductors, storage devices, displays, and semiconductor manufacturing machines.

The CBP announcement stated that importers must use the classification code HTS 9903.01.32 when declaring to apply for the exemption. If goods have been declared but not yet cleared, a "post summary correction" can be used to apply for a refund; if already cleared but still within the protest period, a "protest" can be filed for a refund. It is recommended to complete the correction declaration within 10 days after the goods are released from CBP.

Actual Impact of Exemption Measures on Apple and Its Supply Chain

This exemption measure is crucial for Apple. According to Barron's, in 2024, about $385 billion of U.S. imports will fall under the exemption, with $100 billion coming from China. In the smartphone category, imports from China account for as much as 81%, most of which are Apple iPhones.

Analysts pointed out that without the exemption, iPhones could face tariffs as high as 145%, causing prices to soar to $2,300 or even $3,000, severely impacting market demand. Wedbush analyst Dan Ives called the exemption "the best news for tech investors," allowing tech giants like Apple, Nvidia, and Microsoft to temporarily breathe a sigh of relief.

Response and Adaptation of Taiwan and Asian Supply Chains

Taiwanese tech companies are closely monitoring the CBP announcement. According to the Commercial Times, Taiwanese ODM manufacturers noted that while the exemption measures bring short-term benefits, the frequent changes in U.S. tariff policies necessitate a high degree of flexibility in the supply chain. Some customers have already requested faster delivery of components in the second quarter to cope with potential policy changes.

Moreover, the product categories covered in the CBP exemption list have a significant impact on Taiwanese tech companies like TSMC, UMC, Quanta, Wistron, and MediaTek. Most of these companies' products belong to the ICT and semiconductor fields, which originally faced high tariff pressures, now temporarily alleviated.

References

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