Taiwan warns of economic impact after US tariff decision

Taiwan Semiconductor Manufacturing Company’s $100 billion US investment may not shield the country from future chip-related tariffs.
US, Taiwan, Trump, Tariffs, Semiconductors

The United States has imposed a 32 per cent tariff on Taiwanese exports, with semiconductors notably exempt from the new trade restrictions.

Taiwan, a major supplier of advanced electronics, has strongly condemned the move, calling it unfair and harmful to economic ties. Nearly a quarter of Taiwan’s exports go directly to the United States, with electronic components and consumer devices making up a significant share.

President Donald Trump has previously criticised Taiwan’s dominance in the semiconductor industry and threatened tariffs on the sector. While chips remain untouched for now, industry experts warn that tariffs could still be introduced in the future.

Taiwan Semiconductor Manufacturing Company (TSMC) recently pledged a $100 billion investment in the US to expand its Arizona operations, a move praised by Trump. Other chipmakers, including South Korea’s Samsung and SK Hynix, are also being urged to increase their investments in American facilities.

Government officials and businesses in Taiwan are now working to mitigate the impact of the tariffs. President Lai Ching-te has signalled interest in expanding trade ties with the US, including potential purchases of natural gas.

The Taiwanese government has lodged a formal protest with Washington, arguing that the tariffs undermine economic cooperation. Analysts suggest that Taiwan may have underestimated Trump’s hard-line trade policies, expecting more favourable treatment after recent investment commitments.

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