Trump's Tariff Exemption Pathway Revealed in Federal Document
18 April 2025 · Uncategorized ·
Source: · https://finance.technews.tw/2025/04/06/chance-to-avoid-death/
As President Trump imposed new tariffs, the Fanpage 'Don't Panic, Listen to Ah Fu' highlighted a formal U.S. federal government document titled ‘Annex III,’ emphasizing that Clause 9903.01.34 offers a potential exemption route: products containing more than 20% American components (U.S. content) may be exempt from additional tariffs.
‘Annex III’ will officially take effect on April 5, outlining revised tariff orders applying equally to all countries regardless of their relationship with the U.S. Specific nations like Taiwan, China, South Korea, India, and Vietnam face an extra punitive tax ranging between 11% and 50%.
The announcement that “Your products exported to America will be subject to a 32% tariff from April 9” has reportedly shocked investors in industries such as AI supply chains and server factories. However, according to the Fanpage’s analysis, this clause provides an escape route for those meeting its criteria: if any product contains more than 20% of American components (U.S. content), it can be exempted from these additional tariffs under Clause 9903.01.34.
For example, products like NVIDIA’s servers that utilize US-designed chips and intellectual property could easily exceed the threshold for exemption. This clause appears specifically designed to benefit Taiwanese, South Korean, and Japanese ODM manufacturers who heavily rely on American technology in their supply chains.
Addressing concerns about whether only a portion of components needs to be from America or if just that portion can avoid tariffs, 'Don't Panic, Listen to Ah Fu’ clarifies the clause considers not merely ‘place-of-origin,’ but also design, IP authorization, firmware and control systems—all quantifiable American technology contributions. This interpretation is based on Clause 9903.01.34 along with Note 2 (v)(xii).
Analyst Ming-Chi Kuo from TF International Securities noted that his investigation of supply chains related to major U.S. consumer electronics and AI chip manufacturers has not yet revealed any information regarding tariff exemptions.
‘Annex III’ will officially take effect on April 5, outlining revised tariff orders applying equally to all countries regardless of their relationship with the U.S. Specific nations like Taiwan, China, South Korea, India, and Vietnam face an extra punitive tax ranging between 11% and 50%.
The announcement that “Your products exported to America will be subject to a 32% tariff from April 9” has reportedly shocked investors in industries such as AI supply chains and server factories. However, according to the Fanpage’s analysis, this clause provides an escape route for those meeting its criteria: if any product contains more than 20% of American components (U.S. content), it can be exempted from these additional tariffs under Clause 9903.01.34.
For example, products like NVIDIA’s servers that utilize US-designed chips and intellectual property could easily exceed the threshold for exemption. This clause appears specifically designed to benefit Taiwanese, South Korean, and Japanese ODM manufacturers who heavily rely on American technology in their supply chains.
Addressing concerns about whether only a portion of components needs to be from America or if just that portion can avoid tariffs, 'Don't Panic, Listen to Ah Fu’ clarifies the clause considers not merely ‘place-of-origin,’ but also design, IP authorization, firmware and control systems—all quantifiable American technology contributions. This interpretation is based on Clause 9903.01.34 along with Note 2 (v)(xii).
Analyst Ming-Chi Kuo from TF International Securities noted that his investigation of supply chains related to major U.S. consumer electronics and AI chip manufacturers has not yet revealed any information regarding tariff exemptions.