U.S. President Donald Trump is set to share more information about chip tariffs on Monday, despite new exemptions for select consumer electronics, including smartphones and computers. The exclusion is a big break for tech giants like Apple, who depend on their Chinese production bases to make some of its flagship devices. Chinese imports of the select tech will still be subject to a 20% tariff issued by Washington in Feburary.
Taiwan says its negotiations with the U.S. is proceeding smoothly, as it looks to lower the 32% tariff imposed by Washington, now paused for 90 days.
Taiwan says its negotiations with the U.S. is proceeding smoothly, as it looks to lower the 32% tariff imposed by Washington, now paused for 90 days.
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NewsTranscript
00:00Hello, everybody.
00:01Another reprieve from the U.S.'s sweeping global tariffs.
00:05Washington now granting exclusions to the levy for select electronics entering the United States,
00:12including smartphones, laptops, computer monitors, and semiconductor-related equipment,
00:18a lot of which come from China.
00:20It's a big break for tech giants like Apple,
00:23who depend on its Chinese production base to make some of its flagship products.
00:28This shows that clearly the administration is aware of the concerns from the big tech industry.
00:34And it's also clear that the tech industry has been continuing to protest
00:40or lobby about all this tariff over the past two weeks,
00:45because this is a big problem for their global strategy, global supply chain management.
00:50The U.S. has imposed its highest tariffs on China,
00:53with the so-called reciprocal tariff rate, which now stands at 125 percent.
01:00That's on top of a 20 percent duty on all Chinese imports issued months ago,
01:05a penalty Washington says is related to its domestic fentanyl crisis.
01:10Chinese electronics included in the latest exemption will still face that 20 percent duty.
01:16But for other countries like Taiwan, the specified tech is free from Trump's tariffs,
01:22at least for now.
01:24U.S. President Trump saying he will have more info on chip tariffs soon.
01:29I'll give you that answer in one day.
01:32Chips have so far been exempted from Taiwan's 32 percent tariff from the U.S.,
01:37now paused for 90 days.
01:40Washington's latest exceptions bringing some relief to Taiwan's electronics-dominated economy.
01:46Last year, the country's top exports to the U.S. were automatic data processing equipment,
01:52chips, computer-related and communications-related parts.
01:57Premier Zhu Rongtai says maintaining Taiwan's industrial edge
02:01was brought up in Taipei's first virtual negotiation with Washington.
02:05We'll take the basic capital of the country to maintain the industry.
02:12With just 90 days to strike a deal,
02:15economists say Taiwan must address non-tariff issues,
02:19like Washington's criticism of what it calls Taiwanese currency manipulation,
02:24restrictions on U.S. meat and cars,
02:27and its large trade imbalance at the heart of Trump's concerns.
02:31It's always been a very, very challenge to reduce the trade deficit between U.S. and Taiwan
02:36because there's just so much effort regarding semiconductor computing,
02:41computer-related products, right?
02:43The number is very, very hard to compensate for other purchases from Taiwan.
02:49So far, Taiwan says talks with the U.S. are proceeding, quote,
02:53smoothly, and that it will have more calls soon to secure deals in a still-evolving situation,
02:59including a looming announcement from Trump on the country's most valuable sector.
03:04Ethan Penn and Joy Sen for Taiwan Plus.