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After months of speculation, Trump finally pulled the trigger on April 2nd, unveiling broad reciprocal tariffs on all U.S. trade partners. Under his plan, Taiwan, which levies a 64% tariff on U.S. goods, will now face a 32% tariff on its exports to America, according to TechNews and The White House.
Notably, the report notes that a 34% tariff will be imposed on Chinese imports, adding to the existing 20% surcharge, bringing the total tariff on Chinese goods to 54%. Meanwhile, other affected nations include EU (20%), India (26%), South Korea (25%), Japan (24%), Switzerland (31%), Vietnam (46%), UK and Brazil (10% each).
10% on All Imports, Higher Rates for “Bad Actors”
According to The White House, using his IEEPA authority, President Trump will impose a 10% tariff on all countries. This will take effect April 5, 2025 at 12:01 a.m. EDT.
As per BBC, higher tariffs for select countries will kick in on April 9.
As highlighted in the TechNews report, Trump emphasized that the new tariff policy is not a fully reciprocal measure but rather imposes fees roughly equal to half of what each country charges the U.S. He added that businesses can avoid these tariffs entirely by shifting production to the U.S., as per TechNews.
The report highlights that before the reciprocal tariffs, Trump had already imposed a 25% tariff on steel and aluminum. Starting 12:01 AM ET on April 3, a 25% tariff on imported cars will take effect.
Notably, according to TechNews, exemptions apply to semiconductors, copper, pharmaceuticals, energy, and minerals unavailable in the U.S., as well as steel, aluminum, automobiles, and auto parts already covered by Section 232 tariffs.
The Economic Daily News reports that, according to the executive order from The White House, if a trade partner imposes retaliatory tariffs on the U.S., Trump may raise reciprocal tariffs. However, if the partner takes corrective action and aligns with U.S. positions on economic and national security issues, the tariffs could be reduced or limited.
TSMC in The Spotlight
Unsurprisingly, Trump once again mentioned Taiwanese foundry giant TSMC during the tariff announcement event, as noted by TechNews. He called the company the world’s most important chipmaker and emphasized that, even without U.S. investment support, TSMC is set to invest $200 billion in America, the report adds.
In March, TSMC announced an additional $100 billion investment in advanced semiconductor manufacturing in the U.S., expanding on its previous $65 billion commitment in Phoenix, Arizona.
TrendForce notes that mass production is expected to begin after 2030 if the three newly planned fabs proceed on schedule. The U.S., which has been actively expanding its advanced semiconductor capacity, is projected to hold 22% of the global market share by 2030, as per TrendForce.
However, Commercial Times raises concerns that while U.S. tariffs on Taiwanese chips have limited direct impact, the new tariffs on servers from Taiwan and ICT products using Taiwanese chips could be far more significant, as they are often assembled in countries like Vietnam, Thailand and Malaysia.
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(Photo credit: The White House)
