The ongoing trade dispute between the US and China continues to escalate, with Chinese original equipment manufacturers (OEMs) finding themselves caught in a dilemma due to internal and external pressures. According to industry sources, threats of tariffs exceeding 100%, blocked loopholes for origin circumvention, and policy uncertainties have forced many businesses to suspend acceptance of US orders while seeking market diversification to mitigate risks. However, a sluggish domestic market, painful transitions, and a volatile international trading environment leave these companies in a difficult position.

US President Donald Trump’s sweeping new tariffs are already forcing semiconductor firms to rethink production strategies. Supply chain sources say high costs at TSMC’s Arizona fab had previously made US clients like Apple hesitant to commit to large-scale orders.

The US-China tariff war has escalated once again, with the US announcing tariffs as high as 145% on Chinese goods. In response, China has implemented a countermeasure of 125% tariffs, plunging international trade into turbulent waters. In this invisible battle, manufacturers and traders are resorting to various survival tactics, seeking a glimmer of hope amid the chaos.