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.

Taiwan • Business • 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.

Key Updates

04/13 22:39

Trump's Fluctuating Tariff Policy: Electronics Subject to Separate Tariffs, U.S. Postpones Tariffs on 75 Countries for 90 Days

In early April 2025, President Trump of the United States announced the implementation of "reciprocal tariffs" on multiple countries. Subsequently, on April 11, he released a list of 20 electronic products exempt from tariffs. However, Trump denied the existence of this policy, calling it "fake news," and planned to impose "semiconductor tariffs" on these products. Meanwhile, the U.S. temporarily postponed the imposition of reciprocal tariffs on 75 countries for 90 days. This policy repeatedly triggered market fluctuations, and experts warned that investment risks in Taiwan's stock market have increased.

04/13 22:06

In 2025, the US-China trade war heats up: Trump's tariff policy impacts the global tech supply chain, TSMC sees a sudden surge in urgent orders, and France proposes European Union border quotas.

In April 2025, the US-China trade war intensified as President Trump imposed tariffs as high as 145% on Chinese goods, and China retaliated by imposing a 125% tariff on American goods. The Trump administration temporarily exempted electronic products like smartphones from tariffs, but the semiconductor industry remained affected. TSMC received urgent orders from American clients, which accelerated the construction of its US plant. The French Finance Minister suggested that the EU set up border quotas to prevent a flood of cheap Chinese goods. After some fluctuations, the Taiwan stock market showed four major bullish signals, and market sentiment stabilized.

04/13 19:07

Taiwan Semiconductor Manufacturing Company (TSMC) invests $165 billion to speed up the construction of its wafer plant in Arizona, United States, to address potential US semiconductor tariffs.

TSMC is accelerating the construction of its third-phase semiconductor fabrication plant in Arizona in response to the potential imposition of tariffs on semiconductor products by the United States, increasing the total investment to $165 billion and advancing the groundbreaking to June 2025. U.S. Secretary of Commerce Lutnik stated that individual tariffs on semiconductor products are expected to be imposed within one to two months to encourage manufacturing to return to the U.S., prompting heightened alert and responsive measures within the industry.

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.

Exemption List Announced, Covering 20 Categories of Electronic Products

The U.S. Customs and Border Protection (CBP) announced late on April 11th that 20 categories of electronic products will be exempt from the originally planned 125% "reciprocal tariff" on Chinese imports and the 10% global base tariff on imports from other countries. These products include smartphones, laptops, hard drives, memory chips, flat-panel displays, semiconductor components, and manufacturing equipment, and the exemption is retroactive to goods entering or declared on or after April 5, 2025.

According to the CBP announcement, the exempted products cover Harmonized Tariff Schedule of the United States (HTSUS) codes including 8471 (automatic data processing equipment), 8517 (communications equipment), 8541 and 8542 (semiconductor components), and 8486 (semiconductor manufacturing equipment). This measure directly benefits U.S. tech companies reliant on Asian supply chains, particularly Apple, NVIDIA, Dell, and TSMC.

Commerce Secretary: Exemption is Temporary, Will Be Included in New "Semiconductor Tariff" Framework

However, this exemption is not a permanent policy. U.S. Commerce Secretary Lutnick stated in an interview on ABC's political program "This Week" on April 13th that these electronic products will be included in a new "semiconductor tariff" framework within one to two months.

Lutnick noted, "This is not a permanent exemption. All these products will be classified under the semiconductor category and will be subject to a special targeted tariff." He emphasized that the core goal of this policy is to encourage the domestic production of key technology products like semiconductors, chips, and flat-panel displays in the U.S., reducing reliance on Asia, particularly China and Southeast Asia.

He added, "We need to manufacture these products in the U.S. rather than relying on overseas supply chains."

Tariff Policy Shifts to "National Security-Oriented" Tariffs on Specific Industries; Electronic Products to Be Taxed Separately

Lutnick further explained that the Trump administration's tariff policy is shifting from "reciprocal tariffs" to "national security-oriented tariffs on specific industries." This means future taxation will no longer be based solely on trade balance but will strategically target specific industries.

He stated that smartphones, laptops, and other electronic products will be "taxed separately" and included in the new tariff framework alongside semiconductor products. These products will no longer enjoy permanent exemptions but will be considered strategic goods closely tied to the semiconductor industry.

Additionally, Lutnick revealed that the White House plans to implement similar tariffs on other industries such as pharmaceuticals and timber to promote the return of key industries to the U.S.

Trump Administration to Launch Semiconductor Investigation, Plans to Tax Under Trade Expansion Act Section 232

According to White House officials and media reports, the Trump administration will initiate an investigation into the impact of semiconductor imports on national security under Section 232 of the 1962 Trade Expansion Act. This move could pave the way for new tariffs on semiconductor products in the future.

President Trump himself stated during a press inquiry on Air Force One on the evening of April 12th, "I will give you an answer on Monday, and it will be very specific. Our country is bringing in a lot of money, really a lot." This statement further reinforced the expectation of imminent new tariffs.

It is reported that Lutnick has called senior executives of several computer and tech companies to inform them in advance of the upcoming semiconductor tariff plan, emphasizing that these tariffs will cover consumer electronic products.

Exemption List Offers a Buffer for Tech Industry in Short Term, Long-Term Policy Remains to Be Seen

While this exemption measure offers a buffer for the tech industry in the short term, according to Lutnick, these products will eventually be included in the new tariff system. The U.S. government's policy direction clearly aims at "bringing manufacturing back," using tariffs as the main tool.

White House spokesperson Karoline Leavitt also stated, "President Trump has made it clear that the U.S. cannot rely on China to manufacture semiconductors, chips, smartphones, and laptops." She noted that these companies are accelerating the relocation of their manufacturing operations back to the U.S.

The specific rates and scope of the upcoming "semiconductor tariff" have not yet been announced, but based on the Trump administration's past experience with steel and aluminum tariffs, future rates may be 25% or higher.

References

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