Taiwan expects little impact of Trump’s tariffs on chip shipments According to Reuters
Written by Wen-Yee Lee
TAIPEI (Reuters) – Taiwan expects only a small impact from any tariffs imposed by the incoming administration of U.S. President-elect Donald Trump on semiconductor exports due to technological superiority, Economy Minister Kuo Jyh-huei said on Friday.
Home of the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), the island is a key link in the global technology supply chain for companies such as Apple (NASDAQ: ) and Nvidia (NASDAQ: ).
But Taiwanese policymakers have warned new US tariffs against all countries from the Trump administration could slow economic growth this year in the import-dependent economy.
Trump has promised a full 10% tariff on global exports to the United States and a whopping 60% tariff on Chinese goods. In late November, he specifically promised a 25% tariff on imports from Canada and Mexico when he took office on Jan. 20.
Asked at a news conference about the impact of Trump’s Taiwan tariff order, Kuo said it would not significantly affect the chip industry.
“In our semiconductors and advanced processes, there is a technological leadership advantage and it cannot be changed, so the impact will be minimal,” he added.
Taiwan will also help companies move chains to the United States as needed, away from potentially high import tariffs, Kuo said.
“Now we realize that we should be able to develop the aerospace supply chain industry in the United States, and make some collaborations with US aerospace companies, so that some of Taiwan’s aerospace research and development centers can be moved there.”
Taiwan will also set up an office in Japan in the first half of this year to help Taiwanese businesses invest there, and cooperate with the country on AI and drones, he added.
