Update as of April 14:
On April 11, 2025, the Trump administration announced tariff exemptions on smartphones, computers, and other electronic devices primarily imported from China. New guidance from U.S. Customs and Border Protection also includes exclusions for additional electronic devices and components, such as semiconductors, solar cells, flat panel TV displays, flash drives, and memory cards. (CNBC) On April 13, President Trump stated that tariffs on semiconductors will be announced in the “near future.” However, he also expressed a degree of “flexibility” regarding tariffs on products like cellphones and tablets. (CNN) At this point, the exact scope of the new tariff regime remains unclear.
Update on April 10:
On April 9, 2025, U.S. President Donald Trump announced an immediate 90-day pause on increased tariffs for countries that were previously subject to rates higher than the universal 10 percent tariff. The new measure applies to virtually all countries—except China. (CBS News)
According to current information, Germany—as part of the EU—and Taiwan are included in the 90-day pause and are therefore subject only to the 10 percent universal tariff rate. It remains unclear what will happen once the 90-day period concludes.
The Taiwanese government has released relevant information to support ministries and companies in navigating the current situation. Please refer to the links below for further details (currently available in Chinese only):
- Information for companies
- Information for ministries and commissions (Support Program for Taiwan’s Export Supply Chains)
We have prepared an English summary of the document Support Program for Taiwan’s Export Supply Chains. You can download the file below.
April 7, 2025:
On April 2, 2025, U.S. President Donald J. Trump announced a sweeping new tariff regime targeting key trading partners, including Germany as part of the European Union (EU) and Taiwan. Effective April 5, a universal 10 percent tariff applies to all U.S. imports, with additional country-specific tariffs coming into force on April 9. Under the new rules, EU exports to the U.S. will face a 20 percent tariff, while Taiwanese exports will be hit with a 32 percent tariff.
Key Commodities Affected
- Germany: The 20 percent tariff is set to impact major export sectors such as automobiles, steel, aluminum, and agricultural products.
- Taiwan: The 32 percent tariff on Taiwanese exports includes electronic components, high-tech machinery and other products. At this point semiconductors will not be subject to the new tariffs.
- The White House issued a list of exempted goods (Annex II), which includes energy products (e.g. natural gas, coal etc.), critical minerals (e.g. rare earth elements), pharmaceuticals (raw materials and compounds) as well as copper and semiconductors.
Impact and Reactions
- European Union: European Commission President Ursula von der Leyen warned of global economic damage and indicated the EU is prepared to respond with countermeasures if necessary. The EU is currently considering tariffs on U.S. goods worth up to 28 billion US$, targeting products ranging from dental floss to diamonds (Reuters).
- Taiwan: In immediate reaction to the announcement, Taiwan’s stock market saw a sharp downturn. The TAIEX index fell by nearly 10 percent, prompting Taiwan’s Financial Supervisory Commission to implement temporary curbs on short selling in an effort to stabilize the market (Reuters). President Lai Ching-te announced that Taiwan will not retaliate with tariffs but will seek to initiate tariff-free trade negotiations with the U.S and announced that Taiwanese companies will raise their U.S. investments (Reuters).
Economic Implications and Possible Impact
The newly imposed U.S. tariffs are expected to have significant repercussions for German-Taiwanese trade relations and broader economic development. The tariffs on Taiwanese exports are likely to raise the cost of goods, leading to inflation and lower profit margins for companies, including German businesses that are key suppliers to Taiwan's semiconductor and electronics industries. The broader economic uncertainty caused by the tariffs could also affect investor confidence and trade volumes, leading to challenges for German companies operating in Taiwan, including increased costs, supply chain delays, and market volatility, which will require strategic adjustments to maintain profitability. These developments mark a serious escalation in global trade tensions and may disrupt supply chains and economic growth across multiple sectors.
All information provided has been compiled to the best of our knowledge and belief, based on publicly available sources as of April 14, 2025, at 2:00 PM. While every effort has been made to ensure accuracy and completeness, we accept no liability for any errors, omissions, or subsequent changes in the information presented.