Trump Plans Tariffs on Taiwan Chipmakers

Addressing Republican Party members on Monday, Trump said that his administration will implement the tariffs “in the very near future,” “to return production of these essential goods to the United States of America.” 

The US president argued that production of computer chips and semiconductors “left us and went to Taiwan, which is about 98% of the chip business, by the way.” 

“And we want them to come back, and we don’t want to give them billions of dollars, like this ridiculous program that Biden has,” Trump said.

President Biden's program offered subsidies to chip makers like Intel to manufacture in the US under the CHIPS and Science Act, signed in 2022, alloting $53 billion to enhance US competitiveness against China.

Trump also threatened to impose 25% tariffs on imports from Canada and Mexico unless border security and drug trafficking issues are addressed.

Responding to Trump’s tariff threats on Tuesday, Taiwan’s Economy Ministry said that the semiconductor trade between Taiwan and the US is mutually beneficial, describing it as a “win-win” model. 

Home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), the island is a vital link in the global technology supply chain.