Indonesia and the United States have begun tariff negotiations, while Chinese e-commerce and car companies adjust strategies to address tariff pressures from the US and Europe.

Taiwan • Business • 05/05 07:06
Indonesia and the United States have begun tariff negotiations, while Chinese e-commerce and car companies adjust strategies to address tariff pressures from the US and Europe.

Indonesia and the United States have begun negotiations on mutual tariff policies, focusing on energy and critical mineral cooperation, with Indonesia committing to increase imports of American products. The Chinese e-commerce platform Temu has stopped selling Chinese goods due to the new U.S. tariff policy, sparking a surge in the resale market. Chinese car manufacturers like BYD and Chery are promoting plug-in hybrid electric vehicle (PHEV) models in the EU in an effort to circumvent high tariffs. The South Korean stock market has resumed trading, and the government continues to negotiate tariff policies with the U.S. to prepare for the transition to the new administration.

Key Updates

05/05 17:01

Citigroup CEO Jane Fraser: Companies can handle a 10% tariff, but investment and hiring are still cautious

On May 5th, 2025, Citigroup CEO Jane Fraser said at the Milken Institute Global Conference in Los Angeles that most corporate clients can handle a 10% tariff imposed by the United States on trade partners, but a 25% tariff is challenging. Companies are generally postponing capital expenditures and hiring, waiting for the economic outlook to clear up. She pointed out that tariffs might affect supply chains and prices, and companies are bolstering their balance sheets and tweaking supply chain strategies to deal with the uncertainty.

05/05 15:03

The United States has temporarily suspended a 46% tariff on Vietnam, with the first round of negotiations on May 7 focusing on trade fairness.

The United States originally planned to impose a 46% tariff on Vietnamese goods starting April 9, but after various negotiations, the measure has been delayed by 90 days. Vietnamese Prime Minister Pham Minh Chinh confirmed on May 5 that the two sides will hold the first round of tariff talks on May 7, with a focus on safeguarding Vietnam's interests and advancing fair trade. Vietnam has sent a technical team to the U.S. and developed strategies to mitigate the tariff impact, supporting businesses and workers.

05/05 14:01

Temu's Response to Changes in U.S. Tariff Policies: Halts Direct Shipping from China, Shifts Focus to U.S. Warehouses and Local Sellers

Faced with the U.S. terminating the "small package tax exemption" policy and increasing import tariffs on Chinese goods, Chinese e-commerce platform Temu has stopped direct shipments from China to the U.S., instead choosing to supply from local U.S. warehouses and recruiting local U.S. sellers. This move is a response to the pressure of tariffs as high as 145%, signifying Temu's shift from a low-cost strategy to a local fulfillment model.

05/05 11:30

Trump Postpones Tariffs for 90 Days: Analysis of Divergent Trends in Taiwan Panel Market Across Three Key Product Lines

In early April, President Trump of the United States announced a "reciprocal tariff" policy on 75 countries, which was postponed for 90 days due to pressure, impacting the global electronics supply chain. Taiwan's panel industry felt the impact, as TV panel demand weakened and prices stayed stable; monitor panel prices slightly increased due to the demand for pre-stocking; while laptop panel demand remained stable, with prices unchanged. Taiwanese panel manufacturers, such as AU Optronics and Innolux, have responded to market changes by implementing production cuts and holding emergency meetings.

05/05 09:02

Shanghai May Day Holiday Export Goods Mega Sale: High-Quality Export Products at Discounts Up to 80% Off Sparks a Buying Frenzy

During the May Day Golden Week in 2025, many regions in mainland China, especially Shanghai, experienced a consumer boom of "export-to-domestic-demand." High-quality products originally exported to Europe and the United States were sold locally at prices as low as 20% of their original price, attracting a large number of consumers. Products included thermos cups that won the German Red Dot Award and woven shoes made for European and American brands. This phenomenon occurred because the U.S. increased tariffs, prompting companies to pivot to the domestic market and sell through exhibitions and pop-up stores, reflecting the trend of foreign trade companies actively tapping into the domestic market.

05/05 07:06

Indonesia and the United States have begun tariff negotiations, while Chinese e-commerce and car companies adjust strategies to address tariff pressures from the US and Europe.

Indonesia and the United States have begun negotiations on mutual tariff policies, focusing on energy and critical mineral cooperation, with Indonesia committing to increase imports of American products. The Chinese e-commerce platform Temu has stopped selling Chinese goods due to the new U.S. tariff policy, sparking a surge in the resale market. Chinese car manufacturers like BYD and Chery are promoting plug-in hybrid electric vehicle (PHEV) models in the EU in an effort to circumvent high tariffs. The South Korean stock market has resumed trading, and the government continues to negotiate tariff policies with the U.S. to prepare for the transition to the new administration.

05/05 02:00

US-China trade war is reshaping the global economy: agricultural and technology stocks are taking a hit, South America is on the rise, and US stocks have risen for nine consecutive days.

In early May 2025, the US-China tariff war heated up, severely hitting American agricultural and technology industries, with South American countries like Brazil filling the gap in the Asian market. Nevertheless, the US stock market rose for nine straight days as investors focused on the Federal Reserve's interest rate decisions and trade negotiations. OPEC+ ramped up production, causing oil prices to fall, and the weakening dollar boosted the value of Asian currencies, shifting capital flows and exchange rate dynamics.

05/04 19:02

The U.S. semiconductor tariff investigation is approaching its deadline, causing concern in the industry and leading to the emergence of hedging strategies in the bond market.

The U.S. Department of Commerce's investigation into the national security implications of imported semiconductors will conclude on May 7, with little public feedback, causing industry concerns over potential tariff policies. The Trump administration's tariff policies have already led to market fluctuations, especially impacting the semiconductor supply chain. Experts advise investors to shift to investment-grade corporate bonds for hedging, as the safe-haven status of U.S. Treasury bonds is under scrutiny.

05/04 15:30

The United States imposes a 25% tariff on imported automotive and motorcycle parts, leading to increased costs for Harley-Davidson. Japanese Prime Minister Shigeru Ishiba expresses strong disappointment.

On May 4, 2025, the United States imposed a 25% tariff on imported auto and motorcycle parts, affecting the global automotive industry. Harley-Davidson motorcycles, which rely on imported parts, are under pressure from rising costs and potential price hikes. Japanese Prime Minister Shigeru Ishiba expressed disappointment that the U.S. did not grant special treatment for Japan and called for the withdrawal of the tariff measures. This policy is likely to impact consumer prices in the coming months, especially affecting manufacturers whose vehicles are not assembled in the United States.

05/04 14:00

Barron's Survey: Investors are more pessimistic about the stock market than they have been in 30 years, with only 20% supporting Trump's tariff policies, with bonds and gold being favored.

The spring 2025 survey by Barron's Financial Magazine shows that only 26% of fund managers are optimistic about the stock market for the coming year, setting the lowest record since 1997. Trump's high tariff policies have only 20% support, as the market is concerned about a potential economic recession. Bonds and gold are seen as safe-haven assets, favored by 70% and 58% of respondents, respectively, indicating a shift in asset allocation to defensive strategies.

Indonesia and the US Begin Reciprocal Tariff Negotiations, Focusing on Energy and Key Mineral Cooperation

On April 30, Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that Indonesia, as one of the first countries invited by the US to begin reciprocal tariff negotiations, submitted specific proposals to the US and restarted negotiations on the bilateral Trade and Investment Framework Agreement (TIFA). During their visit to the US, the Indonesian delegation met with senior officials such as the US Trade Representative, the Secretary of Commerce, and the Secretary of the Treasury, and visited several American companies, including Amazon, Boeing, Microsoft, and Google.

Indonesia has committed to increasing imports of energy and agricultural products from the US and strengthening cooperation in the key mineral supply chain. Indonesian company Indorama also announced a $2 billion investment in a blue ammonia project in Louisiana, USA. To expedite the implementation of negotiation results, President Joko Widodo has approved the establishment of three special task forces responsible for trade negotiations, employment expansion, and investment environment improvement.

However, if the US imposes a high tariff of 32% after the 90-day tariff suspension period ends, Indonesia's export sector may be impacted. Indonesia's manufacturing activity has shown signs of decline, with the manufacturing index in April dropping to its lowest since 2021, leading to layoffs and production cuts. The Indonesian central bank is expected to cut interest rates once in the second and third quarters to support economic growth.

Chinese E-commerce Platform Temu Stops Selling Chinese Goods, US Buying Trend Rises

The US recently canceled the tax exemption policy for small Chinese parcels (under $800) and imposed tariffs of up to 120% on such goods, leading Chinese e-commerce platform Temu to stop selling Chinese goods in the US. This move has prompted US consumers to turn to informal channels, such as purchasing Chinese goods through travel bloggers and influencers.

Reports indicate that 76 companies, including Nike and Adidas, have collectively written to the White House requesting tariff exemptions, arguing that high tariffs will make basic consumer goods unaffordable for low- and middle-income families and lead to frozen orders and inventory shortages for businesses.

Additionally, some Chinese exporters are evading US tariffs by "washing" the origin of goods, rerouting them to third countries like Malaysia, and then changing the certificate of origin before exporting to the US. Countries like South Korea, Vietnam, and Thailand have strengthened origin verification to prevent becoming transit points for tariff evasion.

South Korean Stock Market Resumes Trading, Government Continues Tariff Policy Negotiations with the US

The South Korean stock market was closed on May 5 and 6 for the Buddha's Birthday and Children's Day holidays and resumed trading on Wednesday. On May 2, the KOSPI index closed at 2,559.79 points, up 6.7% since the beginning of the year. Among individual stocks, SK Hynix rose 4.79%, while Samsung Electronics and LG Energy Solution fell 2.16% and 1.23%, respectively.

The Bank of Korea noted that the daily average fluctuation of the Korean won against the US dollar in April reached 9.7 won, the largest since November 2022, reflecting market reactions to the uncertainty of US tariff policies. The Korea Exchange stated that since the lifting of the short-selling ban on March 31, short-selling activity has returned to near pre-ban levels.

South Korea's Minister of Trade, Industry, and Energy, Jung In-kyu, stated that the government will continue negotiations with the US on new tariff policies and emphasized that the progress of the negotiations will provide a sustainable policy foundation for the new government set to take office on June 3.

BYD and Chery Promote PHEV Models in the EU to Avoid High Tariffs on Pure Electric Vehicles

In response to the EU's imposition of tariffs up to 45.3% on Chinese-made pure electric vehicles (BEVs) starting November 2024, Chinese car manufacturers BYD and Chery have adjusted their strategies to promote plug-in hybrid electric vehicles (PHEVs) to reduce tariff burdens.

According to data from market research firm Rho Motion, BYD and Chery sold 3,269 and 757 PHEVs, respectively, in the EU by March 2025, a significant increase from nearly zero sales when the EU implemented temporary tariffs in July 2024. PHEV sales for BYD and SAIC Motor accounted for 41% and 49% of their total electric vehicle sales in Europe in March, respectively.

Currently, BYD pays a 27% tariff on pure electric vehicles sold in the EU, with the Atto 3 model incurring a tariff of 10,257 euros per vehicle; in contrast, PHEV models like the Seal U are subject to only a 10% tariff, approximately 3,999 euros. BYD has announced plans to introduce two additional PHEV models in Germany this year to further expand its market share.

References

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