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Taiwan’s chipmakers fear costly choice: Trump’s tariffs or US factories
Taiwan’s economy is under pressure as Trump threatens 100 per cent tariffs on semiconductors – unless firms build in the US
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Lawrence Chungin Taipei
Taiwan’s export-reliant economy is under mounting pressure following US President Donald Trump’s declaration that Washington would impose a 100 per cent tariff on imported semiconductors – unless companies establish operations in the United States.
The latest blow came as a 20 per cent US tariff on Taiwanese goods took effect on Thursday, affecting a wide range of industries including machine tools, plastic goods, and agricultural exports such as orchids and seafood.
The dual tariff threats have rattled Taiwan’s hi-tech sector and sparked urgent debate over whether more Taiwanese firms – particularly in the semiconductor supply chain – will be forced to shift investments to the US to maintain market access and competitiveness.
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Speaking from the Oval Office on Wednesday during a meeting with Apple CEO Tim Cook, Trump made clear the policy’s intent: “We’re placing a 100 per cent tariff on all imported semiconductors. But if you’re building in the United States of America, there’s no charge.”
Trump’s comments appeared to exempt Taiwan Semiconductor Manufacturing Co (TSMC) – the world’s largest contract chipmaker – from the tariff, as the firm has committed to investing US$165 billion in chip production facilities in Arizona.
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While the scope and implementation timeline of the proposed tariff remain unclear, analysts said the policy was expected to target chip companies without a manufacturing presence in the US.
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