Taiwan eyes minimal disruption from US import policies

A strategic response to potential US tariffs on semiconductor exports.

Taiwan's exclusion from new US AI curbs highlights its strong export controls and legal compliance.

Taiwan is optimistic about the limited impact of US President-elect Donald Trump’s proposed tariffs on semiconductor exports, citing the nation’s technological edge in the global chip industry. On Friday, economy Minister Kuo Jyh-huei emphasised that Taiwan’s advanced semiconductor processes, led by industry giant TSMC, maintain an irreplaceable position in the supply chain for major companies like Apple and Nvidia.

Despite Trump’s pledges for sweeping tariffs—10% on global imports and up to 60% on Chinese goods—Taiwanese policymakers acknowledged potential challenges for the island’s export-driven economy. However, Kuo reassured that the chip sector’s resilience lies in its technological leadership, which mitigates the risk of significant disruption.

To adapt to the shifting trade landscape, Taiwan plans to help companies relocate parts of their supply chains to the United States if necessary. The island also aims to deepen cooperation in industries like aerospace and advanced technology by fostering ties with US and Japanese firms. This includes establishing a dedicated office in Japan to bolster collaboration on AI and drone development, Kuo said.

Taiwan’s proactive approach reflects its strategic positioning in global trade and its commitment to maintaining robust economic ties amid evolving US policies.