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Economic Times
02-08-2025
- Business
- Economic Times
Taiwan to face economic risk as US mulls semiconductor tariffs under Trump proposal: Think tank
ANI Taiwan is bracing for a significant economic challenge as US President Donald Trump threatens to impose a tariff on semiconductors, according to the Chung-Hua Institution for Economic Research (CIER), reported by Focus industry is central to the island's exports and overall economy. Information and communication technology (ICT) products account for over 70% of Taipei's exports to the United States, according to the CIER. CIER President Lien Hsien-ming told CNA on Friday that Taiwan's dependence on semiconductors is notably higher than that of other countries. "He said compared with other countries, the semiconductor industry carries a heavier weighting for Taiwan in terms of industrial and economic development. In 2024, Taiwan recorded a trade surplus of $73.9 billion with the United States, up from $47.8 billion in 2023, largely driven by strong American demand for AI servers and semiconductors during the ongoing artificial intelligence boom. "I think Trump really cares about a trade deficit resulting from purchases of high tech gadgets such as semiconductors," Lien said, referring to a US investigation launched in April under Section 232 of the Trade Expansion Act of 1962, targeting ICT products--especially semiconductors--as part of a possible new tariff regime."As ICT products make up more than 70 percent of Taiwan's exports to the US, a tariff on semiconductors could have a bigger impact on Taiwan's economy than the 20 percent blanket tariff the White House announced Thursday," Lien newly announced blanket tariff rate was lowered from 32%, previously suggested by Trump on April response, President Lai Ching-te said the 20% tariff was provisional and that Taiwan would continue negotiations with the US to secure a lower rate. Taiwan's negotiating team will also address the semiconductor issue directly with their American counterparts. Lai's statements reflect a growing focus within the Taiwanese government on the potential threat posed by a targeted semiconductor tariff."Lai's remarks show the government is focused on a possible tariff on semiconductors as such a levy could threaten Taiwan's economy," Lien said, according to the Focus Vice President Chen Shin-horng echoed Lien's concerns, saying that based on current US negotiation tactics, targeted tariffs on specific industries like semiconductors are likely to be steeper than general blanket added that Trump appears to be leveraging Section 232 of the Trade Expansion Act as a strategic tool to push for major foreign investments in the the US may be aware that foreign chipmakers are unlikely to launch new production facilities in the short term, tariffs could still be phased in gradually.A tariff under the clause could be set at a lower level at the beginning and gradually increased over the next two to three years, Chen Semiconductor Manufacturing (TSMC), currently investing $65 billion in Arizona with an additional $100 billion pledged, has already warned the US government that proposed tariffs on Taiwanese semiconductors could significantly undermine demand and disrupt its investment strategy."New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona's significant investment plan in Phoenix," the chipmaker wrote in a letter to the US Department of Commerce in May, according to the Focus Taiwan. US Commerce Secretary Howard Lutnick said in late July that results of the ongoing investigation will be announced within two weeks, ahead of any final decision on semiconductor tariffs. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Jane St: How an options trader smelt a rat when others raised a toast TCS job cuts may not stop at 12,000; its bench policy threatens more Unlisted dreams, listed disappointments? NSDL's IPO leaves pre-IPO investors riled. Regulators promote exchanges; can they stifle one? Watch IEX Did Meesho's Valmo really deliver a knockout punch to e-commerce logistics? Sebi's settlement with market intermediaries: More mystery than transparency? Trump tantrum: Check the Indian pulse of your portfolio. 71 stocks from 5 sectors for whom Trump may not even be noise F&O Radar| Deploy Short Strangle in Nifty to gain from Theta decay Stock Radar: PI Industries stock showing signs of momentum; takes support above 50-DEMA – time to buy?
Epoch Times
13-05-2025
- Business
- Epoch Times
US, China Face Tough Negotiations After Trade Truce: Analysts
The agreement reached by the United States and China has effectively paused the trade fight between the world's two largest economies, but analysts say it does little to resolve their underlying differences. Following a two-day negotiation marathon in Geneva, the United States and China released a joint statement on May 12, rolling back the massive tariffs they've slapped on each other recently. Washington will lower tariffs on Chinese imports to 30 percent from 145 percent, and Beijing will reduce tariffs to 10 percent from 125 percent. This agreement is temporary, lasting 90 days, and provides time for trade officials from both countries to negotiate further. The pause will take effect on U.S. stocks, the dollar, and oil prices all Analysts offered a more tempered response, suggesting that tough negotiations lie ahead after the temporary trade cease-fire. Related Stories 4/3/2025 5/13/2025 'The negotiation will enter the deep water,' Edward Huang, a Taiwan-based commentator who tracks China's economy, told the Chinese edition of The Epoch Times on May 12. China would expect the United States to eliminate all reciprocal tariffs, but for the United States, such a tariff cut is likely to require a substantial plan from Beijing, which may include opening up its market, buying more American goods, or making other commitments, Huang said. The 30 percent tariff that the Trump administration is now imposing on Chinese goods includes a 20 percent levy previously imposed to pressure Beijing into reducing the flow of fentanyl into the United States. Another 10 percent levy is the China's state media also suggested that challenges lie ahead in negotiating a comprehensive trade deal. 'Structural problems and deep-rooted differences between China and the United States still exist. These issues cannot be solved in one step,' Xinhua said in a commentary published shortly after announcing the tariff cut. 'We should have realistic expectations for the talks, as well as for the future of economic and trade relations between China and the United States.' Moreover, some China observers pointed to the skepticism toward communist China in the United States due to Beijing's history of promising change but failing to deliver. 'The U.S.–China talks have reached a period of stalemate, as the United States no longer trusts China's promises,' Wang Guo-chen, an expert at the Chung-Hua Institution for Economic Research, a Taipei-based think tank, told The Epoch Times. He pointed to the Chinese regime's lack of progress in carrying out its commitments outlined in the 2020 trade deal signed with the first Trump administration. From protecting American intellectual property rights to increasing The deal, known as the Phase One It followed a 2018 The USTR said in its latest annual Luo Ya contributed to this report.
Business Times
30-04-2025
- Business
- Business Times
Taiwan's economy beats estimates on pre-tariff export rush
[TAIPEI] Taiwan's economy grew much faster than expected in the first quarter, fuelled by a surge in exports as companies rushed to ship goods ahead of looming US tariffs. Gross domestic product expanded 5.37 per cent from a year earlier, according to a statement by the statistics bureau in Taipei on Wednesday (Apr 30). That compares with the 3.6 per cent growth estimated by economists surveyed by Bloomberg. Taiwan's export-oriented economy has benefited from a surge in global demand for its high-tech products underpinning AI development in recent years. Exports from the island in March rose to a record US$49.6 billion, with shipments to the US and Asean countries also seeing new highs in that month. On April 2, US President Donald Trump announced sweeping 'reciprocal tariffs' on almost all economies. Taiwan was slapped with a 32 per cent levy, although the higher duty was later postponed for 90 days. The tariff threat has prompted economists and analysts to lower their estimates for Taiwan's economic growth this year, with Morgan Stanley cutting its forecast to 2.2 per cent from 3.4 per cent. The Chung-Hua Institution for Economic Research, a semi-official think tank based in Taipei, even projected that growth could drop to 0.16 per cent in the worst-case scenario. With uncertainty looming, Morgan Stanley analysts expect Taiwan's central bank to begin its rate-cutting cycle as early as September. Taipei has pledged to reduce non-tariff trade barriers and said it would increase purchases of American energy, agricultural products and military goods. The island's Premier Cho Jung-tai has said that trade talks are expected to take place in May. Earlier in April, Taiwan Semiconductor Manufacturing, Taiwan's biggest company and the go-to supplier of the most advanced chips for Nvidia and Apple, reported better-than-expected results for the first quarter. The firm continued to hold an optimistic outlook for growth this year despite the tariff risks. BLOOMBERG
Yahoo
13-02-2025
- Automotive
- Yahoo
New report shows one type of vehicle outselling all others in China: 'A reflection of the current situation'
New industry data has revealed that domestic sales for all types of new electric vehicles in China rose by over 40% last year, while those for new gas-powered cars plummeted. According to the China Association for Automobile Manufacturers, 31.4 million vehicles were sold in the world's largest automobile market in 2024, representing an increase of 4.5% from the previous year. In turn, the sales of traditional gasoline and diesel-powered vehicles went down 17% in 2024 to only 11.6 million and accounted for 51% of overall new car sales. How often will you be gardening this summer? Every day At least once a week At least once a month I don't garden Click your choice to see results and speak your mind. Chinese passenger car exports also increased by 20% in 2024, and 1.28 million of those exports represent what Chinese automakers have described as "new energy vehicles," including pure battery EVs, fuel-cell cars, and plug-in hybrids. That represents a 6.7% increase from 2023. It's got American and European automakers scrambling. The United States announced a 100% tariff on all China-made electric cars last year in response, as did the European Union, claiming that the country's industry benefited from unfair government subsidies. In reality, these rebates encouraged greater passenger car sales in China, which rose by 13.6% to 22.6 million in December 2024. More EVs on the road can help lessen the impact of Chinese air pollution domestically and globally while saving consumers money. China has been investing in more EV technology over the years to expand the industry beyond passenger vehicles. "Higher-end consumers have started to abandon foreign brands and are turning to comparatively better-priced high-end domestic cars," said Tai Chih-yen, an associate researcher at the Chung-Hua Institution for Economic Research, in an interview. "This is not a so-called consumption downgrade, but more a reflection of the current situation, where many are choosing to be more discreet [in the kinds of cars they drive] and show their patriotism by driving domestic luxury brands." Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
