Electronics Supply Chain Weekly Digest 4-4-25.
DATAPOINT OF THE WEEK: US President Donald Trump announced a sweeping new tariff regime on Wednesday featuring a 10% blanket tariff on all US imports and various targeted duties including China (54%), Japan (24%), South Korea (25%), Taiwan (32%) while Canada and Mexico already face 25% tariffs on many goods including vehicles and auto parts, sparking global market turmoil and recession fears.
Trump’s 25% auto tariffs are expected to impact over $460B in annual imports of vehicles and auto parts, starting with cars on April 4 and parts on May 3, according to Reuters. These auto-related tariffs will not overlap with Trump’s newly announced baseline 10% and reciprocal tariffs.
China has responded by imposing 34% tariffs on American goods, restricting rare earth exports, and targeting firms linked to Taiwan. China has also filed a formal complaint with the WTO, calling the US’s tariffs a blatant violation of WTO rules.
Meanwhile, the EU has not responded yet, but European Commission President Ursula von der Leyen condemned Trump’s sweeping tariffs as a major threat to the global economy and warned the EU is ready to retaliate with up to €26B in tariffs on US goods by mid-April, with broader measures under consideration. However, France and Italy expressed a desire to avoid a trade war but signaled readiness for firm countermeasures if talks fail.
Headlines
Auto/Transportation
- BYD shipments set 1Q record, exceeding 1M NEVs, sets ambitious 5.5M sales target for the year
- BYD expected to surpass Tesla in global BEV sales in 2025, according to Counterpoint Research
- China’s March Auto retails sales up 12% Y/Y with NEV up 39% Y/Y according to preliminary CPCA data
- Continental expects 1Q25 NA light vehicle production down 7% Y/Y, offset by upside in China
- EU proposes to extended timeline for automakers to meet 2025 CO2 targets
- Ford to offer discounts on US models amid rising tariffs, with focus on domestic production
- GM reports 17% Y/Y increase in 1Q25 US sales; plans production shift amid rising tariffs
- Japan faces $17B export loss to US from new tariffs, according to the ITC
- Lucid 1Q25 deliveries up 58% Y/Y; Rivian down 36% decline on demand headwinds
- Mercedes is building inventory in the US amid tariff concerns, expects 25% tariff to reduce margins by 2.5% points, according to Bernstein Research
- Stellantis announces plans to lay off 900 US workers, halt production in Mexico and Canada due to new auto tariffs
- Tesla’s 1Q25 sales fall 13% Y/Y with Europe especially weak amid competition, delays, and Musk’s political involvement
- Tesla’s March China sales drop 11.5% Y/Y; Tesla announced it will launch promotions in China amid rising pressure
- US vehicle sales rise 4.8% Y/Y in 1Q25 as buyers rush to purchase trucks and SUVs ahead of tariffs, according to Wards Intelligence
- Volvo March sales drop 10% Y/Y, with EV sales down 26% across Europe, US, and China
- Volvo’s CEO announces inital recovery plan focused on US production, electrification, and $1B investment in Mexico plant
Datacenter
- Arm expects its share of the global datacenter CPU market to reach 50% by the end of 2025, according to Reuters
- Trump’s new tariffs threaten Big Tech’s AI investments, potentially delaying major projects like Stargate
Industrial
- Airbus faces delays in 1Q25 deliveries due to engine shortage, with trade tariffs adding further pressure
- Global factory activity slowed in March as businesses braced for new US tariffs, with short-term boosts in China and Europe from front-loaded demand
Semiconductors
- Arm, Qualcomm weigh Alphawave acquisition for AI chip edge; Arm chose not to proceed while Qualcomm still considering, according to Reuters
- Trump revamps CHIPS Act with subsidy renegotiations and major staff cuts, raising concerns for Korean firms
- Intel and TSMC strike preliminary joint venture deal amid US pressure to stabilize chip production, says The Information
- Japan announces boosts to Rapidus support above $12B to help launch 2nm chip production
- Nvidia sees over $16B in China H20 chip orders despite US restrictions, according to The Information
- Qualcomm announces its acquisition of VinAI’s genAI unit to strengthen edge AI portfolio
- STMicro and Innoscience announce partnership on GaN tech for AI, EVs, and energy applications
- UMC opens expanded Singapore fab, targets 1M wafer capacity with 22/28nm tech by 2026
Consumer/Other
- Foreign smartphone shipments in China rise 9.2% Y/Y in Feb, driven by Apple, amid overall market growth, according to CAICT data
- Trump closes “de minimis” loophole, imposing duties on low-value packages from China and Hong Kong starting May 2
