[ Trade War SITREP: 13-16 April 2025 ] CHINA SIGNS 40 AGREEMENTS W VIETNAM; Trump to help car industry; decoupling continues…
KEYSTONE DEVELOPMENT
US probes into imports of pharmaceuticals and semiconductors
Federal Register filings reveal probes into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on both sectors on grounds that extensive reliance on foreign production of medicine and chips is a national security threat.
The filings announce 21-day public comment periods and mark President Donald Trump’s latest use of Section 232 of the Trade Expansion Act of 1962 as justification for so-called sectoral tariffs aimed at boosting domestic production of goods he says are critical to national security.
Using the 232 provision, the Trump administration has started investigations into imports of copper and lumber, and probes completed during Trump’s first term formed the basis for 25% tariffs rolled out since his return to the White House in January on steel and aluminum and on the auto industry.
The filings, which indicate the administration began the investigations on April 1, follow exclusions unveiled over the weekend for smartphones, computers and other electronics imported largely from China from Trump’s steep 125% reciprocal duties. Trump officials had said those products would soon be subject to Section 232 tariffs.
Section 232 probes need to be completed within 270 days of their initiation. (source)
DEVELOPMENT
China President visit to Vietnam, agreements signed
Over 40 cooperation agreements were signed on April 14, focusing on trade, supply chains, and infrastructure, though specific financial commitments were not disclosed. (read more)
Supply Chains: Deals to enhance production and supply chain resilience, particularly for electronics and manufacturing, to counter U.S. tariff disruptions.
Railway Cooperation: Agreements to assess new railway projects, with China potentially funding and providing technology for Vietnam’s rail network upgrades.
Trade Certification: A memorandum between the China Council for the Promotion of International Trade and the Vietnam Chamber of Commerce to boost cooperation on certifying goods’ origins, addressing U.S. concerns about Chinese transshipments.
Emerging Sectors: Pacts to expand collaboration in 5G, artificial intelligence, and green energy, aiming to integrate Vietnam into China’s tech ecosystem.
Cultural Ties: Plans for a “Year of Vietnam-China Humanistic Exchange” in 2025 to strengthen people-to-people connections.
Foreshadowing of future actions
USA
“All those products are going to come under semiconductors, and they’re going to have a special focus type of tariff to make sure that those products get reshored.
We need to have semiconductors, we need to have chips, and we need to have flat panels — we need to have these things made in America. We can’t be reliant on Southeast Asia for all of the things that operate for us
So what [President Donald Trump’s] doing is he’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two. So these are coming soon.”
Howard Lutnick
Secretary of Commence
United States of America
13 April 2025
… told ABC News, the exemptions for electronics are only a temporary reprieve. Those products will face separate levies
This, he stressed, would not only “safeguard their own legitimate rights and interests, but also… safeguard international fairness and justice.”
Point of view
UNITED STATES
“I’m looking at something to help some of the car companies where they’re switching to parts that were made in Canada, Mexico and other places and they need a little bit more time.
They’re going to make them here, but they need a little bit more time.”
“I don’t blame China, I don’t blame Vietnam. I see they’re meeting today. Isn’t that wonderful? That’s a lovely meeting…
…trying to figure out, how do we screw the United States of America?”
Donald Trump
President
United States of America
14 April 2025
… remarked during a bilateral meeting with El Salvador’s President Nayib Bukele in the Oval Office.
April 14, 2025: Confirmation that China is no longer exporting seven heavy rare earth metals processed exclusively in the Asian power, as well as heavy rare earth magnets — of which about 90% of the world’s supply are also synthesized on Beijing’s territory, in the April 3-4 export restriction announcement.
The export halt applies to all countries, but access to elements like dysprosium and yttrium are critical to US industry — especially in the tech, electric vehicle, aircraft and defense sectors (source)
China President Xi Jinping visit Vietnam: Over 40 cooperation agreements were signed, focusing on trade, supply chains, and infrastructure, though specific financial commitments were not disclosed.
April 15, 2025: Nvidia said it was informed by the U.S. government that it will need a license to export its H20 AI chips to China. This license will be required indefinitely, according to the filing — the U.S. government cited “risk that the [H20] may be used in […] a supercomputer in China.”
(note: The H20 is the most advanced AI chip Nvidia can export to China under the U.S.’ current and previous export rules. Multiple government officials had been calling for stronger export controls on the H20 because the chip was allegedly used to train models from China-based AI startup DeepSeek, including the R1 “reasoning” model that threw the U.S. AI market for a loop in January.)
Chinese government has told the country’s domestic airlines to stop accepting deliveries of Boeing jets and also instructing its carriers to stop buying airline parts and other components from U.S. companies.
April 16, 2025: Hong Kong Post say it had suspended goods mail services by sea to the United States and will suspend its air mail postal service for items containing goods from April 27 due to “bullying” U.S. tariffs.
(Note: In a statement published Wednesday announcing the decision, the government of Hong Kong cited US President Donald Trump’s decision last week to eliminate the so-called “de minimis” exception for postal items sent from the city to the US.
“The US is unreasonable, bullying and imposing tariffs abusively,” the government said in the statement. “The public in Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the US’s unreasonable and bullying acts.”
The postal service will stop accepting packages transported by sea with immediate effect and stop taking air-borne packages starting from April 27, the Hong Kong government said on Wednesday in a statement.)
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