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

Taiwan • Business • 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.

Key Updates

04/15 02:22

South Korea increases support for strategic industries to 33 trillion won to mitigate risks posed by the US-China trade war.

On April 15, 2025, the South Korean government announced that in response to potential U.S. tariff policies and competitive pressures from China, it will provide an additional 7 trillion won (approximately 4.9 billion USD) to support strategic industries like semiconductors, bringing the total aid to 33 trillion won (approximately 23.1 billion USD). The plan includes infrastructure development, low-interest loans, talent development, and international cooperation, focusing on the semiconductor, display panel, battery, and biotech sectors, with the aim of strengthening South Korea's position in the global high-tech supply chain.

04/14 16:22

2025: Trump implemented the "America First" policy: The global status of the dollar is facing challenges

In 2025, President Trump of the United States promoted the "America First" policy, focusing on protectionism and economic nationalism, using tariffs and trade wars to reshape the global economic order, affecting the dollar's global status. The trade deficit widened, foreign investments pulled out, the dollar weakened, and the de-dollarization trend accelerated, creating monetary and geopolitical challenges for the United States. This article examines the policy background, the methods of implementation, and their effects on the dollar's international standing.

04/14 05:20

The United States announced the phased implementation of tariffs on electronic products and semiconductors, starting in 2025.

In April 2025, the U.S. government announced a two-step adjustment to the tariff policy for electronic products and the semiconductor industry. President Trump announced that the first step would temporarily exempt certain electronic products from high reciprocal tariffs on certain electronic products, and the second step is expected to implement exclusive tariffs specifically on semiconductors and related products within one to two months. This policy adjustment aims to promote the reshoring of industries and emphasizes considerations of national security. The exemption list, which includes computers and smartphones, significantly impacts companies like Apple and TSMC. A national security investigation may be initiated in the future to further adjust the tariff measures.

04/14 04:20

The United States has imposed a 46% tariff on Vietnamese goods, creating pressure on Taiwanese businesses to find ways to overcome.

On April 2, 2025, President Trump of the United States announced the imposition of "reciprocal tariffs" on multiple countries, including Vietnam, levying a 46% import tax on goods from Vietnam, which sent shockwaves through Taiwanese businesses in Vietnam. The U.S. later announced a 90-day suspension and began trade negotiations, but the uncertainty surrounding the policy has already exerted pressure on Taiwanese businesses. Taiwanese businesses in Vietnam are responding by diversifying their markets and optimizing production processes to stay competitive.

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.

U.S. Bond Market Turmoil: 10-Year Yield Soars to 4.59%

The Trump administration announced a 145% tariff on Chinese goods in early April, along with a 10% reciprocal tariff on other countries, triggering a strong market reaction. According to a report by MoneyDJ, on April 11, the U.S. 10-year Treasury yield briefly rose to 4.59%, closing at 4.486%, the highest since February 2023. This yield increase exceeded 50 basis points, marking the largest weekly gain since November 2001.

Market analysis indicates that the surge in yields is due to hedge funds selling bonds to raise cash, wavering market confidence due to the Trump administration's inconsistent policies, and concerns about U.S. fiscal stability. UBS rate strategist Mike Cloherty noted that this bond market sell-off coincided with a stock market decline, reflecting investor unease about the overall economic outlook.

Technology Sector Faces Pressure and Opportunities

Although the Trump administration announced a temporary exemption on April 11 for 20 tech products, including smartphones, computers, and semiconductors, U.S. Commerce Secretary Lutnick quickly pointed out that these exemptions are temporary measures, with new "key tariffs" on semiconductor products expected within the next 1 to 2 months.

According to MoneyDJ, the exemption news temporarily boosted tech stocks, with shares of giants like Apple, Nvidia, and Microsoft rebounding. However, the market remains cautious about future policy directions. Wedbush analysts noted that the exemption is "the most optimistic news for tech stock investors," but emphasized that policy uncertainty remains high.

In this context, some companies are choosing to accelerate shipments to avoid potential tariff risks. Apple reportedly airlifted 600 tons of iPhones from India to the U.S., indicating that companies are actively adjusting supply chain strategies to cope with policy changes.

Taiwan Semiconductor Supply Chain Experiences Urgent Order Surge

Amid the escalating U.S.-China tariff war, Taiwan's semiconductor supply chain is experiencing a noticeable surge in urgent orders. According to reports from United Daily News and Central News Agency, Taiwanese companies like TSMC, ASE Technology Holding, and King Yuan Electronics have recently received a large number of orders from U.S. cloud service providers (CSPs), demanding delivery within 90 days. These CSPs include Amazon AWS, Microsoft, Google, and Meta, all major drivers of AI server demand.

Industry insiders point out that the most critical high-performance computing chips (HPC) in AI servers are mostly produced by TSMC using the N4P advanced process and CoWoS advanced packaging, with subsequent testing handled by ASE and King Yuan Electronics. Due to the fluctuating U.S. policies, CSP customers are choosing to pull in orders early to reduce risk, leading to a capacity crunch in Taiwan's supply chain, known as '爆艙' or 'exploding capacity.'

Former Taoyuan City Councilor Wang Haoyu noted on social media that Taiwan's electronics and semiconductor companies are experiencing a "flood of orders," with air cargo space fully booked, and freight forwarders confirming that "weekend slots are full," highlighting the significant shipping pressure.

Energy Storage and Semiconductor Industries Also Affected

In addition to tech products, China's energy storage industry is also impacted by U.S. tariff policies. According to Yahoo奇摩財經, from April 7 to 8 alone, the market value of Chinese energy storage listed companies plummeted by 450 billion yuan, a decline of 15.92%. The U.S. market accounts for 25% of China's lithium battery demand, and the new tariffs will increase energy storage product prices by nearly 50%, further squeezing Chinese companies' export profits.

On the other hand, China has also implemented retaliatory measures against U.S. semiconductor products, adjusting the rules for determining the country of origin, requiring the country of origin to be determined by the manufacturing location. This move puts pressure on U.S. IDM companies like Intel, Texas Instruments, and ADI, with the potential for order transfer effects benefiting Taiwanese foundries like UMC and Vanguard International Semiconductor.

References

People Also Ask...

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