Tech manufacturing has powered Asia - now it's a casualty of Trump's tariffs

August 1, 2025

President Donald Trump has escalated his trade war strategy with new tariffs targeting multiple Asian economies, not just China as in his first term. These measures aim to reduce trade deficits and bring manufacturing jobs back to America but have sparked market sell-offs in Taiwan and South Korea, both crucial to electronics production. U.S. companies like Apple and Nvidia now face higher costs for their global supply chains, with tariffs hitting components from across Asia and eliminating the "de minimis" rule that exempted parcels under $800 from customs duties.

Who is affected

U.S. companies like Apple, Nvidia, Amazon, eBay, and Etsy
Asian manufacturing economies including China, India, Vietnam, Thailand, Taiwan, and South Korea
U.S. consumers who will likely pay higher prices
E-commerce retailers like Shein and Temu
Second-hand, vintage, and handmade item buyers on American platforms

What action is being taken

Trump is imposing new tariffs on multiple Asian economies including a 25% tariff on Indian imports
A 20% tariff is being placed on Taiwanese imports, with higher 40% tariffs on trans-shipped goods through Vietnam
The "de minimis" rule exempting parcels under $800 from customs duties is being eliminated
Asian stock markets are experiencing sell-offs in response to the tariff announcements
Companies are scrambling to adjust their supply chains and manage increased costs

Why it matters

The tariffs threaten to increase costs throughout global supply chains that power modern consumer electronics
Asian economies that have grown wealthy through exports and foreign investment face significant economic challenges
U.S. tech companies that rely on Asian manufacturing for components and assembly will see increased costs
Apple reported that tariffs already cost them $800 million in the previous quarter and may add $1.1 billion in the next quarter
These measures could disrupt the semiconductor industry, where Taiwan produces more than half of the world's chips

What's next

No explicit next steps stated in the article

Read full article from source: BBC