Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Taiwan, a key player in the global semiconductor industry, will implement a significant electricity price increase starting in mid-October, affecting its industrial users. The Economics Ministry announced that power prices will rise by an average of 12.5%, placing additional financial pressure on major companies like Taiwan Semiconductor Manufacturing Co. (TSMC).
This hike in electricity rates follows a previous increase in April, which saw power bills for industrial users surge by 15% to 25%. TSMC experienced the steepest increases, raising concerns about its profit margins amidst rising operational costs. The latest decision is driven by an anticipated annual growth in power consumption of 2.8% through 2033, largely fueled by demand from the AI sector.
The state-owned utility, Taiwan Power Co. (Taipower), has faced substantial financial challenges over the past two years as it attempted to maintain lower prices despite escalating fuel costs. The utility reported a staggering NT$198.5 billion loss in 2023, marking its second consecutive year of financial shortfalls.
Taipower attributed these losses to soaring international fuel prices following Russia's invasion of Ukraine. While fuel costs have decreased recently, they remain elevated compared to pre-war levels. The utility has pointed out that Taiwan's adjustments to electricity tariffs are relatively slow compared to global standards.
Taiwan's economy, heavily reliant on imported coal and gas, is undergoing a transition as it seeks to diversify its energy sources. The island is investing in renewable energy projects, such as offshore wind, but these initiatives have faced delays and challenges. Additionally, Taiwan plans to shut down its final nuclear reactor by next May, further impacting its energy landscape.
As the power price hike takes effect, stakeholders in Taiwan's semiconductor industry will be closely monitoring its effects on operational costs and overall market competitiveness.
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