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

Taiwan • Business • 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.

Key Updates

04/14 01:07

The Trump Administration intends to terminate duty exemptions for tech products and initiate a national security probe pursuant to Section 232.

On April 14, 2025, President Trump of the United States announced the imposition of specific tariffs on 20 technology products, including smartphones, laptops, and semiconductor chips, even though these products were recently added to a temporary tariff exemption list. U.S. Commerce Secretary Lutnick and White House economic advisor Hassett confirmed that these products will be designated as critical to national security and may face new tariffs within one to two months. The Trump administration plans to conduct a national security trade investigation under Section 232 of the Trade Expansion Act to ensure the independence and security of the U.S. technology supply chain.

04/13 23:07

US-China Tariff War Intensifies: Trump's Policy Drives Up US Bond Yields, Taiwan's Semiconductor Industry Benefits from Rush Order Effect

President Trump of the United States announced a 145% tariff on Chinese goods and imposed a 10% reciprocal tariff on several countries, leading to an escalation in the U.S.-China trade war and causing turbulence in global markets. The yield on the U.S. 10-year Treasury bond surged to 4.59%, reaching a new high for 2023. Despite uncertainties facing the tech industry, strong demand for AI is prompting American cloud service providers to speed up their orders, benefiting Taiwan's semiconductor supply chain with a wave of urgent orders. Companies such as TSMC are benefiting, and air freight space is fully booked.

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.

Exemption List Announced: Tech Products Temporarily Exempt from Reciprocal Tariffs

The U.S. Customs and Border Protection (CBP) announced on April 11, Eastern Time, a list of 20 categories of tech products that are excluded from reciprocal tariffs. These products include:

  • Smartphones
  • Laptops and desktop computers
  • Semiconductor components (such as diodes, transistors, integrated circuits)
  • Semiconductor manufacturing equipment
  • Memory chips
  • Display panels
  • Solid-state drives (SSD)
  • USB flash drives and memory cards
  • Solar cell modules

This exemption measure is retroactively effective from 12:01 AM Eastern Time on April 5 (12:01 PM Taiwan time) and applies to all eligible imported products. According to Barron's, about 64% of Taiwan's exports to the U.S. are exempted, 44% for Malaysia, and about 29% for Vietnam and Thailand.

Exemption Not Permanent: Semiconductor Tariffs to be Implemented in 1-2 Months

Although the exemption list provides a temporary respite for the tech industry, U.S. Commerce Secretary Howard Lutnick clarified in an interview on ABC's "This Week" on April 13 that these electronic products will be classified as "semiconductor products" and will be subject to the upcoming "semiconductor tariffs."

Lutnick stated, "These products are not subject to reciprocal tariffs but will be included in the semiconductor tariffs, expected to be enforced within 1 to 2 months." He emphasized that the U.S. needs to manufacture chips, tablets, and other key electronic products domestically and can no longer rely on the Southeast Asian supply chain.

Additionally, the Trump administration plans to investigate the impact of semiconductor imports on national security under Section 232 of the Trade Expansion Act, paving the way for potential further taxation.

30 Taiwanese Listed Companies Included in Exemption Beneficiary List

According to Fubon Futures, the Taiwanese listed companies benefiting from this exemption policy cover fields such as wafer foundry, IC design, PCB, thermal modules, memory, laptops, assembly, and shipping, totaling 30 companies. The list includes:

  • Wafer Foundry: TSMC (2330)
  • IC Design: MediaTek (2454), Realtek (2379), Novatek (3034), ASMedia (5269)
  • Networking Equipment: D-Link (2332), Accton Technology (2345)
  • Board Cards: Gigabyte (2376), MSI (2377)
  • PCB: Unimicron (2313), Zhen Ding (4958), Compeq (3037), Tripod (3044)
  • Thermal Modules: Delta Electronics (2308), Auras (3017), Chaun-Choung (3324)
  • Optics and Components: Largan Precision (3008), Catcher Technology (2059)
  • Memory: Nanya Technology (2408), Winbond (2344), Phison (8299)
  • Laptop Brands: ASUS (2357), Acer (2353)
  • Assembly: Foxconn (2317), Quanta (2382), Wistron (3231), Wiwynn (6669), Pegatron (4938)
  • Container Shipping: Evergreen (2603), Yang Ming (2609)

These companies are mostly part of the supply chain for U.S. tech giants like Apple, NVIDIA, and Dell, and can avoid the impact of high tariffs in the short term due to the exemption policy.

Policy Variables Remain High, Investors Need to Respond Cautiously

Despite the short-term benefits of the exemption list, Fubon Futures warns that the Trump administration's policies are inconsistent, and the exemption measure may only be a strategic concession rather than a long-term policy shift. Trump explicitly stated that the details of the semiconductor tariffs will be announced on April 14, and there may still be sudden policy changes in the future.

Moreover, China has also adjusted its rules for determining the origin of semiconductor products, using the "location of wafer fabrication" as the origin, which may negatively impact U.S. semiconductor companies like GlobalFoundries and Texas Instruments, while benefiting Taiwanese foundries like UMC and Vanguard International Semiconductor due to order transfer effects.

References

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