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Electronics manufacturers can now breathe a sigh of relief. The US Customs and Border Protection has updated guidelines for US President Donald Trump’s reciprocal tariff measures, listing specific products that will be exempt from the tariffs. They include computers, smartphones and semiconductor chips. However, foreign media has cited a White House official as saying that Trump may still impose new tariffs on the chip industry. Taiwan’s Office of Trade Negotiations says it will continue to monitor the situation.

Voice of Isabel Rosales
CNN anchor
The White House now exempting some of the most popular goods imported to the US from sweeping tariffs.

US Customs and Border Protection on April 11 updated the list of tariffs on imported goods, exempting 20 electronic products, including mobile phones, computers, communications equipment, automatic data processors, displays and modules, and semiconductors. Those products would now be exempt from the 10% base tariff that went into effect at 12:01 a.m. Eastern Time on April 5, providing temporary relief for technology giants such as Nvidia and Apple.

Nieh Chien-chung
Tamkang University
The so-called exemption means a return to the previously announced level of tariffs. That is, 10% tariffs imposed 90 days from the announcement. Of course, 10% is still quite high. The average tariff imposed by the US currently stands at about 2.5%, while the average on imports from the US is about 4%.

Semiconductor chips, such as those made by TSMC, are currently exported to the US tax-free. However, US taxes on the industry under Trump are unpredictable. Foreign media reported that a White House official revealed that Trump will soon launch a new round of national security trade investigations on semiconductors and may impose other new tariffs on the chip industry. Chips may face new tariffs within the coming weeks or months.

Nieh Chien-chung
Tamkang University
It’s possible that within 10 days of that 90-day deadline, there will be a new tax policy. So, there may be many U-turns ahead.

Taiwan’s Office of Trade Negotiations has cautioned that the US may still impose additional tariffs, using national security considerations as justification. Trump has said during a press conference that he would reveal on Monday whether new tariffs would be imposed on semiconductors or related products. Market turmoil is likely to follow, if new tariffs are announced.

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