Eyeing to compel chip manufacturers to expand in the US, President Trump plans to impose 100% tariffs on Taiwanese semiconductors. Believing in their tech superiority, Taiwan considers this a ‘win-win’ situation.
US President Donald Trump has announced plans to impose high tariffs on semiconductors manufactured in Taiwan, aiming to encourage chip manufacturers to relocate production to the United States.
Speaking at the House Republican Conference in Miami recently, Trump proposed tariffs potentially as high as 100% to incentivise companies to shift their operations away from Southeast Asia.
He stated that such tariffs would force manufacturers to invest in US-based factories, noting that they would prefer to make this move rather than face heavy taxes on imported chips.
This announcement follows Trump’s long-standing criticism of the Biden administration’s CHIPS and Science Act, which offers federal subsidies to semiconductor companies to boost US production. Trump argued that these subsidies were ineffective, suggesting that they encouraged companies to expand in other countries.
He emphasised that, in contrast, his tariff plan would compel companies to build manufacturing plants in the US, stating that it would lead to a surge in domestic production.
Although the President did not specify when the tariffs would be introduced, he suggested they would be implemented soon. He also reiterated his previous criticisms of Taiwan’s dominant position in the global semiconductor market, accusing the Biden administration of providing unnecessary financial support to Taiwan, which, according to Trump, already had significant resources.
In response to Trump’s tariff proposal, Taiwan’s government has called an emergency meeting to address the situation. According to a Reuters report, Premier Cho Jung-tal reassured Taiwanese citizens that Taiwan’s role in the global industrial supply chain remains critical.
He further emphasised that Taiwan would continue to build cooperative plans with the US and maintain its competitive edge. In his statement, Cho framed the relationship between Taiwan and the United States as a “win-win situation,” highlighting the mutually beneficial nature of their partnership in high-tech sectors.
Trump’s remarks also hinted at broader tariff measures, including potential duties on steel, aluminium, and copper—materials essential for the growing construction of data centres. Reflecting on the decline of US manufacturing, he lamented that America had once been a leader in shipbuilding but had since lost much of its industrial capacity.
He pledged to restore production to the US, including unlocking rare earth minerals for domestic use.
While Taiwan’s government remains confident in its economic ties with the US, TSMC, a leading Taiwanese semiconductor manufacturer, is yet to comment on Trump’s latest tariff plans. Incidentally, it has commenced the construction of a $65 billion fabrication unit in Arizona.
Reuters stated that despite concerns, Taiwan’s Economy Minister suggested that the impact of any potential tariffs on Taiwan’s semiconductor exports would be minimal due to the technological superiority of Taiwanese products.
