U.S. Commerce Secretary Howard Lutnick announced new tariffs that will impact smartphones and semiconductors, emphasizing on American manufacturing and national security.

Taiwan • Business • 04/13 15:36
U.S. Commerce Secretary Howard Lutnick announced new tariffs that will impact smartphones and semiconductors, emphasizing on American manufacturing and national security.

On April 13, 2025, United States Secretary of Commerce Howard Lutnick announced that smartphones, computers, semiconductors, and related electronic products will be subject to the new "semiconductor tariff" system in the next month or two. Although these products were recently granted temporary exemptions, Lutnick emphasized that the exemptions are not permanent. The purpose of the taxation is to encourage manufacturing to return to the United States and to ensure national security. This policy is tied to the Trump administration's national security investigation and may involve a tax rate of 25% or more, with specific details to be announced on April 14.

Key Updates

04/13 18:39

Adjustment to Trump's Tariff Policy: Tech Products Temporarily Exempted, 30 Taiwanese Publicly Traded Companies Benefit

In early April 2025, President Trump of the United States announced the implementation of reciprocal tariff measures on 75 trade partners. The policy, originally set to take effect on April 9, was postponed for 90 days due to pressure, with the tariff rate reduced to 10%. On April 11, the U.S. Customs and Border Protection released a list of 20 technology products exempt from tariffs, including smartphones and computers, effective retroactively from April 5. U.S. Secretary of Commerce, Lutenik, stated on April 13 that these products would be included in the upcoming "semiconductor tariff policy." Thirty publicly traded companies in Taiwan may benefit from the exemption policy, but they should be cautious of potential policy changes.

04/13 18:08

The EU is accelerating negotiations for a free trade agreement to address US tariffs, and the ECB is expected to cut interest rates in April to ease economic pressure.

In response to U.S. President Trump's imposition of high tariffs on foreign trade partners, the European Union has postponed imposing retaliatory tariffs on the U.S. for 90 days to create room for negotiations and has sped up negotiations on free trade agreements with several countries to lessen dependence on the U.S. The European Central Bank plans to cut interest rates on April 17 to tackle slowing inflation and sluggish economic growth. This action is intended to lessen the impact of U.S. tariff policies on the European economy and to adjust the EU's trade and monetary policies accordingly.

04/13 17:06

The United States has temporarily exempted electronic products from tariffs, and the Secretary of Commerce has announced that tariffs on semiconductors will be imposed in one to two months.

On April 13, 2025, the U.S. government announced a temporary suspension of import tariffs on 20 categories of electronic products, including smartphones, laptops, and semiconductor components, offering short-term relief for companies like Apple, Dell, and TSMC. Howard Lutnick, the U.S. Secretary of Commerce, stated that this is a transitional measure, which is expected to be integrated into a new "semiconductor tariff" framework within one to two months, aimed at encouraging manufacturing to return to the U.S. and reducing dependence on Asian supply chains.

04/13 16:38

Trump's Tariff Policy for 2025 Increases Shoe Prices: Brands such as New Balance Face Pressure from Rising Import Costs

At the beginning of 2025, the Trump government implemented a new tariff policy, imposing tariffs as high as 125% on footwear products imported from countries like Vietnam and China, resulting in higher costs in the U.S. footwear market. Even though brands like New Balance stress "Made in USA," price hikes are unavoidable due to their reliance on imported materials. U.S. shoe manufacturing makes up just 1% of the market, and consumer spending is expected to go up, with shoe prices generally rising by 10% to 15%. This policy is intended to encourage the return of American manufacturing, but the supply chain's dependence on Asia makes it hard to avoid cost pressures.

04/13 16:38

Taiwanese companies encounter high tariffs and cost challenges when establishing factories in the US: Cultural differences further complicate matters.

Under President Trump's "reciprocal tariff" policy, Taiwanese companies face challenges in establishing factories in the United States, including high construction and labor costs, cultural differences and management system disparities, and supply chain breaks. Although semiconductor products are temporarily exempt, other high-value products are not, forcing companies to consider establishing factories to avoid tariffs. The experiences of companies like TSMC in establishing factories in the U.S. highlight the challenges of "Made in America" and have led to issues such as labor disputes and legal risks.

04/13 15:36

U.S. Commerce Secretary Howard Lutnick announced new tariffs that will impact smartphones and semiconductors, emphasizing on American manufacturing and national security.

On April 13, 2025, United States Secretary of Commerce Howard Lutnick announced that smartphones, computers, semiconductors, and related electronic products will be subject to the new "semiconductor tariff" system in the next month or two. Although these products were recently granted temporary exemptions, Lutnick emphasized that the exemptions are not permanent. The purpose of the taxation is to encourage manufacturing to return to the United States and to ensure national security. This policy is tied to the Trump administration's national security investigation and may involve a tax rate of 25% or more, with specific details to be announced on April 14.

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.

On April 13, 2025, Premier Cho Jung-tai (Chuo Jong-tai) held a meeting with edamame producers in Pingtung to discuss the impact of U.S. tariff policies on Taiwan's edamame industry. Taiwan's edamame exports are primarily to Japan, accounting for 70%, while the U.S. accounts for about 20%. With U.S. tariffs on Taiwan reduced to 10% and Chinese tariffs increased to 125%, there may be a shift to the Japanese market, putting competitive pressure on Taiwan. The government plans to launch an NT$88 billion support program to help businesses explore markets and upgrade equipment. The details of the subsidies will be announced on April 21.

04/13 14:39

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.

04/13 11:08

Escalation of the US-China trade war impacts the German economy: GDP is forecasted to decline, and exports are hindered, forcing a shift to new markets.

The escalation of the US-China trade war is putting pressure on the German economy, hindering exports, with GDP expected to decline. The German government and industry are seeking strategies, including exploring emerging markets, restructuring supply chains, and driving value chain transformation to lessen reliance on the US and Chinese markets. Reports by IAB and IW show that tariff policies will lead to a drop in Germany's GDP and a decline in employment. Germany is advancing free trade agreements with Southeast Asia, Africa, and Latin America, and enhancing local manufacturing and boosting technology R&D.

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.

Policy Shift After Temporary Exemption

According to an announcement by the U.S. Customs and Border Protection (CBP) on April 11, 20 products including smartphones, computers, semiconductor components, semiconductor manufacturing equipment, flat-panel displays, and memory cards have been granted temporary tariff exemptions, with most of these products originating from China. This move is seen as a short-term benefit for tech companies like Apple, Nvidia, and Dell that rely on imports. However, on the 13th, Lutnick clearly stated that these exemptions are only transitional measures and will be reintroduced into the tariff scope in the form of "semiconductor tariffs" in the future.

"This is not a permanent exemption," Lutnick stated on the program, "All these products will be categorized under the semiconductor category and will face a special focused tariff to ensure that the production of these products can return to the United States."

Tariff Targets and Timeline

Lutnick pointed out that the products to be included in the new tariff system include:

  • Smartphones
  • Laptops and desktop computers
  • Semiconductor components and integrated circuits
  • Semiconductor manufacturing equipment
  • Flat-panel displays
  • Memory cards and USB drives

These products will no longer enjoy temporary tariff exemptions but will be categorized as "semiconductor products," with the new tariffs expected to be officially implemented within the next one to two months. Although the specific tariff rate has not been announced, based on the previous Trump administration's tariff model for other industries, a rate of 25% or higher may be adopted.

Strategic Considerations Behind the Policy

In the interview, Lutnick repeatedly emphasized that the core goal of this policy is to "revitalize American manufacturing," with national security as the main basis. He pointed out that the U.S. can no longer rely on Southeast Asia or China to supply key technological products, especially semiconductors and chips.

"We need to produce semiconductors, chips, flat-panel displays, and these things must be manufactured in the United States," he said, "We cannot rely on Southeast Asia to provide everything we need to operate."

White House spokesperson Karoline Leavitt also added in a statement that President Trump has made it clear that the U.S. cannot rely on China to manufacture smartphones, laptops, and other key technological products. She pointed out that these products involve national security, and future tariff measures cannot be canceled through international negotiations.

Tariff Policy Linked to National Security Investigation

According to Reuters, the Trump administration plans to initiate a national security investigation into semiconductor imports based on the Trade Expansion Act. This investigation will assess the potential threat of foreign semiconductor products to U.S. national security and could serve as the legal foundation for imposing new tariffs.

White House officials revealed that President Trump will announce more specific details about semiconductor tariffs on April 14 (Monday). At that time, the tariff scope may be further expanded to cover other strategic industries such as automobiles, steel, and pharmaceuticals.

Tariff Model and Industry Repatriation Policy

Lutnick stated that the White House will adopt an "industry-specific" tariff model, designing exclusive tariff structures for specific industries such as semiconductors and pharmaceuticals to encourage companies to relocate their production lines back to the U.S. He pointed out that this model is similar to the policy for the pharmaceutical industry, aiming to reduce dependence on foreign supply chains.

"We cannot rely on foreign countries to meet our basic product needs," Lutnick said, "These products are related to national security, and we must manufacture them ourselves in the United States."

Background of the Trump Administration's Tariff Policy

Earlier this month, President Trump announced a 10% uniform tariff on goods from various countries worldwide and implemented "reciprocal tariffs" ranging from 11% to 50% for some countries. However, on April 9, Trump announced a 90-day suspension of reciprocal tariffs for 75 countries, maintaining a tariff rate of up to 125% for China, plus an additional 20% in response to the fentanyl issue, bringing the total tariff rate on Chinese goods to 145%.

Against this backdrop, the temporary exemption for electronic products is seen as a buffer measure for the tech industry, but Lutnick's latest statement indicates that these exemptions will soon end and be replaced by more targeted "semiconductor tariffs."

References

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