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

Taiwan • Business • 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.

Key Updates

05/05 21:01

At the Milken Global Conference, U.S. Senior Officials Confront Trade Uncertainty Stemming from Trump's New Tariff Policy.

On May 5, 2025, the 28th annual Milken Institute Global Conference was held in Beverly Hills, California, where senior leaders from the finance, technology, and government sectors discussed the trade uncertainties triggered by the new tariff policies introduced by Trump. U.S. Treasury Secretary Scott Besant stated that tariffs are crucial for reviving investment and manufacturing, but business leaders, such as Citigroup CEO Jane Fraser, noted that while a 10% tariff is manageable, the uncertainty is what hinders investment. The U.S. has imposed tariffs of up to 245% on Chinese goods, impacting the global economy, leading to a contraction in Asian manufacturing and a decline in UK exports.

05/05 17:01

In April 2025, the U.S. services sector continued to expand for ten straight months, with price pressures reaching a two-year high.

In April 2025, U.S. service sector activity continued to expand, with the ISM Services PMI rising to 51.6, marking the tenth consecutive month above the expansion threshold. However, there was an increase in price pressures, with the ISM Price Index reaching 65.1, the highest since January 2023. Supply bottlenecks, policy uncertainty, and import tariffs have driven up business costs, affecting economic activity and inflation metrics.

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.

TV Panels: Demand Weakens, Prices Hold Steady

Although Trump's tariff policy has been temporarily postponed, its uncertainty has already had a substantial impact on the TV panel market. According to a report by TrendForce in early May, TV panel demand has noticeably weakened since the second quarter, with brand manufacturers holding high inventory levels, leading to order reductions. To cope with the weak demand, panel manufacturers initiated production cuts during the May Day holiday, with an estimated average operating rate in May down by 6 to 7 percentage points compared to April, in order to maintain price stability.

In terms of pricing, TV panel prices remained stable in May. Specifically, the average price for a 32-inch panel was $36, 43-inch was $66, 55-inch was $127, and 65-inch was $177. TrendForce research vice president, Boyu Fan, pointed out that although brand customers still have purchasing momentum, most have turned conservative, with only a few maintaining their second-quarter purchase volumes, resulting in an overall shipment growth rate being adjusted to 2%.

Monitor Panels: Tariff Exemption Stimulates Stocking, Prices Slightly Increase

In contrast to TV panels, the monitor (MNT) panel market is experiencing a different trend. Due to a 90-day tariff exemption for IT products, some brand customers are actively stocking up, with strong demand momentum. TrendForce noted that this wave of early stocking has led to a continued slight increase in monitor panel prices in May.

Specific price changes are as follows: Open Cell panels (excluding backlight modules) increased by an average of $0.2; for panel modules, 21.5-inch and 27-inch increased by $0.1, while 23.8-inch, due to stronger demand, increased by $0.2. The average prices in May were: 27-inch at $63, and 23.8-inch at $49.9.

However, as TV panel demand weakens, the overall panel market atmosphere is cooling, which may restrain the price increase of monitor panels. Panel manufacturers remain cautious about future demand, and their pricing strategies are not overly aggressive.

Laptop Panels: Stable Demand Rhythm, Prices Remain Flat

For laptop panels, despite also enjoying a 90-day tariff exemption, brand customers remain cautious about stocking up. The main reason is that production bases in Southeast Asia are not yet fully established, limiting short-term capacity expansion, resulting in no significant increase in demand momentum.

TrendForce pointed out that the laptop panel market maintains a steady shipping pace, with prices remaining flat. The average prices in May were: 17.3-inch at $38.3, 15.6-inch at $40.3, 14-inch at $26.9, and 11.6-inch at $25.1.

Panel manufacturers are concerned about a potential demand freeze after the exemption period ends, so they adopt more flexible pricing strategies in negotiations with brand customers, attempting to secure orders with favorable conditions to ensure market share. Overall, the laptop panel market has not shown significant growth but has not been greatly impacted by tariff policies, presenting a stable trend.

Taiwan Panel Manufacturers' Response Strategies: Production Cuts, Emergency Meetings, and Flexible Shipping

Facing the dual pressures of policy and market conditions, Taiwan's panel giants AUO and Innolux have adopted multiple response measures. AUO's General Manager, Frank Ko, stated that the industry chain holds emergency meetings twice a week and communicates in real-time through Line groups to strictly control inventory and capacity. Innolux Chairman, Jim Hung, noted that urgent orders surged during the 90-day tariff postponement period, benefiting second-quarter revenue, but subsequent pressure is significant, requiring close monitoring of customer dynamics and product lines.

Additionally, Innolux is adjusting its shipping arrangements due to the U.S. market accounting for about 8% to 10% of its share and is actively expanding automotive displays and advanced packaging applications to diversify risks. E Ink Holdings also mentioned that its e-paper products benefited from customers pulling in orders early, with full capacity in the first half of the year, and will flexibly adjust capacity allocation based on tariff changes in the future.

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