logo
Trump's 100% semiconductor tariffs may hit chipmakers in Singapore, other SEA nations

Trump's 100% semiconductor tariffs may hit chipmakers in Singapore, other SEA nations

Straits Times3 hours ago
Sign up now: Get ST's newsletters delivered to your inbox
Mr Trump did not say when the new tariff would take effect or whether only new investments would get exemptions.
AUSTIN – Advanced chips used in artificial intelligence (AI) may escape US President Donald Trump's proposed sky-high tariffs, but legacy chips that are made in Singapore and other South-east Asian countries like Malaysia and the Philippines will likely take a hit.
A lot of questions are up in the air for the semiconductor industry after Mr Trump's sudden announcement of
an
'approximately 100 per cent' tariff on semiconductors imported into the United States.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

North Korean rescued after swimming across border
North Korean rescued after swimming across border

Straits Times

time11 minutes ago

  • Straits Times

North Korean rescued after swimming across border

Sign up now: Get ST's newsletters delivered to your inbox Tens of thousands of North Koreans have fled to the South since the peninsula was divided by war in the 1950s. Seoul - A North Korean defector who swam across a sea border with South Korea while reportedly tied to floating plastic has been rescued and taken into custody, Seoul authorities said on Aug 7. The North Korean managed to swim across the de facto maritime border off the western coast of the Korean peninsula on the night of July 30, South Korea's Joint Chiefs of Staff said. The border is known as the Northern Limit Line and has occasionally served as a route for North Korean defectors swimming to South Korea's Ganghwa Island. 'The military identified the individual near the north of the mid-river boundary,' a military official told reporters. The individual, who local media reported was tied to Styrofoam when he was found, waved for help and said he wanted to defect to South Korea when asked by a South Korean naval officer, the official said. The operation took about 10 hours, according to Seoul, and the individual was rescued at around 4am on July 31. The North Korean is now in custody and has expressed their wish to defect, the defence ministry said. Top stories Swipe. Select. Stay informed. Singapore Some ageing condos in Singapore struggle with failing infrastructure, inadequate sinking funds Singapore PUB investigating wastewater discharge in Eunos: Pritam Singapore Water gel guns among newer tools NParks uses to manage monkeys in estates World Trump eyes 100% chips tariff, but 0% for US investors like Apple World Trump's 100% semiconductor tariffs may hit chipmakers in Singapore, other SEA nations Business DBS shares hit record-high after Q2 profit beats forecast on strong wealth fees, trading income Business UOB lowers outlook on tariff impact after 6% drop in Q2 profit; shares fall 1.7% Singapore SCDF officer who molested female subordinate gets 15 months' jail Ganghwa Island, located northwest of Seoul, is one of the closest South Korean territories to North Korea, with some parts of the surrounding sea lying just 10km from the maritime border between the two countries. Tens of thousands of North Koreans have fled to the South since the peninsula was divided by war in the 1950s, with most going overland to neighbouring China first, then entering a third country such as Thailand before finally making it to the South. Defections across the land border that divides the peninsula are relatively rare, as the area is densely forested, heavily mined and monitored by soldiers on both sides. But a North Korean man defected in July to the South by crossing the Military Demarcation Line. The number of successful escapes dropped significantly from 2020 after the North sealed its borders – purportedly with shoot-on-sight orders along the frontier with China – to prevent the spread of Covid-19. North Koreans are typically handed over to Seoul's intelligence agency for screening when they arrive in the South. AFP

Trump tariffs kick in today. How will Singapore, South-east Asia be affected? Here's what you need to know
Trump tariffs kick in today. How will Singapore, South-east Asia be affected? Here's what you need to know

Business Times

time11 minutes ago

  • Business Times

Trump tariffs kick in today. How will Singapore, South-east Asia be affected? Here's what you need to know

[SINGAPORE] A few rounds of tariff rates have been announced this year, as US President Donald Trump set initial baseline rates and countries scrambled to reach new deals. Trump had set a pause on country-specific tariffs, which initially was to expire on Jul 9; it then sent South-east Asian countries and China scrambling to secure last-minute deals and protect their economies from trade shocks. He then signed an executive order last week with changes to some country rates. US duties rose from 10 per cent to levels between 15 and 41 per cent for a list of trading partners. These higher rates came into effect for dozens of economies on Thursday (Aug 7). In South-east Asia, countries were initially faced with huge tariff rates. Vietnam was slapped with a 48 per cent tariff rate, but was revised down to 20 per cent in July. However, a 40 per cent 'transhipping' tariff on goods that originate from another country and then sent to Vietnam before being shipped to the US will still take effect. Indonesia also had its rate cut from 32 per cent to 19 per cent. The White House said Indonesia will eliminate tariff barriers on over 99% of U.S. products exported to Indonesia across all sectors, including for all agricultural products, health products, seafood, information and communications technology and others. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Singapore has a baseline rate of 10 per cent, but Prime Minister Lawrence Wong said it's a rate that the country 'can live with.' In the rest of the region and the world, many products from economies such as the European Union, Japan and South Korea now face a 15 per cent tariff, even with deals struck with Washington to avert steeper threatened levies. China's original tariff rate was 145 per cent, but an earlier agreement revised it to 40 per cent. Talks are still ongoing between the US and China, with a deadline of Aug 12. Here's a look at the latest tariff rates in the region. In terms of sectoral tariffs, Trump announced on Thursday that he would impose a 100 per cent tax on imports that include semiconductors, though companies moving production back to the US would be exempted. Some chips that are made in Singapore will likely be affected. RHB analysts earlier in August said that Singapore faced threats due to potential sectoral tariffs on semiconductors and pharmaceuticals. They added that 'Singapore continues to be the most exposed' in Asean, citing its high trade openness and reliance on manufacturing exports. - With additional reporting from Bloomberg

Confusion over tariff stacking hampers Japan's bid to pin down US trade deal
Confusion over tariff stacking hampers Japan's bid to pin down US trade deal

Straits Times

time14 minutes ago

  • Straits Times

Confusion over tariff stacking hampers Japan's bid to pin down US trade deal

Japan is urging US President Donald Trump to lower tariffs on cars to 15 per cent from 27.5 per cent. TOKYO – A fresh discrepancy in interpretations of the US-Japan trade deal came to the fore on Aug 7, as Japan's chief negotiator visits Washington to press for follow-through on a pledge to cut a duty on car imports to 15 per cent. Japanese media reports said Washington would not exempt Tokyo from an order stacking new 15 per cent across-the board tariffs on top of existing duties, hours before they come into effect. Top Japanese trade negotiator Ryosei Akazawa had said on Aug 5 that duties would not be stacked on top. He met US Commerce Secretary Howard Lutnick on Aug 6 in the US, reiterating the terms of the trade agreement reached in July and calling for its quick implementation. The top priority for Japan is to have the US follow through as soon as possible on a promise to cut car tariffs. July's deal also included a pledge to change the universal duty on Japan to 15 per cent, up from the 10 per cent baseline but lower than a threatened 25 per cent. The new rate is to take effect on Aug 7, but the discord over stacking shows the two sides are not on the same page over details and implementation steps. Kyodo News cited an unidentified White House official as saying the 15 per cent duty would be added to current tariffs. That is in line with an executive order released by the US administration last week, which indicated the 15 per cent cut-off applied to the European Union but did not mention that it would apply to Japan. Top stories Swipe. Select. Stay informed. Singapore Some ageing condos in Singapore struggle with failing infrastructure, inadequate sinking funds Singapore PUB investigating wastewater discharge in Eunos: Pritam Singapore Water gel guns among newer tools NParks uses to manage monkeys in estates Life Feeling extra patriotic? Here are 7 other SG60 songs beyond official NDP theme Here We Are Business DBS shares hit record-high after Q2 profit beats forecast on strong wealth fees, trading income World Trump eyes 100% chips tariff, but 0% for US investors like Apple World Trump's 100% semiconductor tariffs may hit chipmakers in Singapore, other SEA nations Singapore SCDF officer who molested female subordinate gets 15 months' jail The discrepancy may be limited in scope. Before President Donald Trump began announcing new tariffs on nations around the world, the US had applied duties averaging 1.4 per cent on Japanese goods, according to estimates in February by Professor Kenichi Kawasaki at the National Graduate Institute for Policy Studies in Tokyo. More importantly, Japan is urging Mr Trump to lower tariffs on cars to 15 per cent from 27.5 per cent, a combination of an existing 2.5 per cent and an additional 25 per cent, as agreed upon in the deal. It remains unclear when the change will take place. Implementing the deal is one of the reasons Japanese Prime Minister Shigeru Ishiba has cited for staying in his role even after his ruling party suffered a historic election loss in July. 'There are all sorts of debates over the tariffs, but we have reached an agreement,' Mr Ishiba said at a press conference in Hiroshima on Aug 6. 'As stated by US government officials involved in previous US-Japan trade negotiations, it is much, much more difficult to implement the deal than to agree on it.' BLOOMBERG

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store