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

Taiwan • Business • 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.

Key Updates

04/15 08:21

Temu's withdrawal from US advertising causes a sharp drop in App Store rankings due to US-China tariff policies.

Chinese e-commerce platform Temu encountered setbacks in its expansion into the US market. On April 9, 2025, Temu pulled out of Google Shopping ads in the US, leading to its iOS App Store download ranking plummeting from 3rd or 4th place to 58th. This shift happened amid the US raising tariffs on Chinese goods, highlighting Temu's dependence on advertising and its market vulnerability. The new US tariff policy has had a direct impact on its business model.

04/15 06:23

US-China Trade War Intensifies: Foreign Investors Downgrade China's Economic Outlook, Nomura Overhauls Its Operations in China

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04/15 04:20

Lin Yongxiang, Chairman of DaJiang Biomedical, is Expanding into the U.S. Market Despite the Trend: Stabilizing Prices and Capturing Orders Amid Taiwan Stock Market Volatility, Global Expansion as a Competitive Edge

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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.

Stage One: Temporary Exemption from Countervailing Tariffs on Electronic Products

On April 5th, 2025, the United States officially implemented a 10% baseline tariff on all global imports, with plans to impose an additional 11% to 50% countervailing tariff on certain countries starting April 9th. However, on April 9th, the Trump administration announced a 90-day suspension of the countervailing tariffs for over 75 countries that had not taken retaliatory measures against the U.S., maintaining only the 10% baseline rate. China was excluded from the exemption list, with tariffs on its imports raised to 125%.

The U.S. Customs and Border Protection (CBP) subsequently issued a notice on April 12th, listing 20 exempt product categories, including computers, smartphones, semiconductor components, integrated circuits, memory cards, solid-state drives (SSD), solar cells, and flat-panel displays. These products are retroactively exempt from the 125% tariff on China and the 10% baseline tariff starting from midnight on April 5th.

U.S. Commerce Secretary Howard Lutnick stated in an ABC interview that this exemption is "a temporary measure before these products are moved to a different tariff category," emphasizing that these products will be included in the semiconductor tariff system in the future. He noted, "We can no longer rely on China for the basic goods we need."

Stage Two: Semiconductor Tariffs Imminent

According to Secretary Lutnick and White House officials, the second stage will be implemented "within one to two months," targeting semiconductors and related products with dedicated tariffs. These products will no longer fall under the "countervailing tariff" system but will be part of a new industry-oriented tariff framework.

U.S. Trade Representative Jamieson Greer stated, "This doesn't mean they won't be taxed to encourage reshoring to the U.S.; they will just fall under a different system." He emphasized that this is a process of transitioning from one tariff category to another potentially different tariff category.

President Trump also posted on the social platform "Truth Social," stating, "These products still have to pay the existing 20% fentanyl tariff, and they are just being moved to another tariff 'category'." He also emphasized that a national security tariff investigation will be launched in the future to comprehensively review the semiconductor and electronic product supply chain.

Under U.S. law, if a "Section 232 investigation" is initiated, the Commerce Department must complete the report within 270 days, and the President will decide whether to impose tariffs. Lutnick stated that notifications related to semiconductors will be published in the Federal Register this week.

Practical Impact of Exemptions and Category Transition

According to the CBP notice and media reports, the exemption list includes multiple entries under the U.S. Harmonized Tariff Schedule (HTS), such as 8471 (computers), 8473.30 (peripheral equipment), 8541 (semiconductor components), and 8486 (semiconductor manufacturing equipment). These products will no longer be subject to the current high countervailing tariffs in the coming weeks but will await the implementation of new tariff categories.

This policy adjustment is significant for companies like Apple and Dell, which rely on Chinese manufacturing. According to Deutsche Welle, about 80% of Apple's iPhones are manufactured in China, and without the exemption, the 125% tariff would have a major impact on their costs and prices.

Additionally, the exemption also covers semiconductor manufacturing equipment, which is crucial for companies like TSMC and Intel that are investing in U.S. manufacturing facilities. High-end equipment suppliers like ASML from the Netherlands and Tokyo Electron from Japan can continue exporting to the U.S. due to the exemption.

Government Statements and Future Procedures

White House spokesperson Levitt stated that President Trump insists that the U.S. cannot rely on China for manufacturing key technology products and has instructed companies like Apple, Nvidia, and TSMC to accelerate the relocation of manufacturing operations back to the U.S.

According to the World Journal, the Trump administration will soon launch a new round of national security trade investigations on semiconductor products and may impose other new tariffs on the industry. This investigation is expected to cover the entire electronic product supply chain, with national security as the primary consideration.

Specific tariff rates have not yet been announced, but Lutnick stated that future semiconductor tariffs "will certainly be lower than the 125% rate on China but may also be higher than the 10% rate imposed on other countries."

References

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