Trump issues threat to Taiwan’s chipmakers to sweep tariffs
Date
1/29/2025 7:19:15 AM
(MENAFN) US President Donald trump announced plans to impose tariffs as high as 100% on imported chips and semiconductors from foreign manufacturers, including Taiwan. Additionally, he pledged to apply similar tariffs on pharmaceuticals and steel to encourage manufacturers to relocate production to the United States.
Speaking to Republican Party members on Monday, Trump stated that these tariffs would be implemented “in the very near future” as part of his goal to bring production of essential goods back to the US. He highlighted that the semiconductor industry had largely moved to Taiwan, which now controls about 98% of the chip market. Trump criticized the current administration's approach, referring to the subsidies provided by President Joe Biden to chip makers like Intel through the CHIPS and Science Act, which aims to increase US competitiveness in the semiconductor sector.
This is the latest in a series of trade-related threats from Trump, who has also threatened to impose 25% tariffs on imports from Canada and Mexico unless the countries address US demands on border security and drug trafficking.
In response, Taiwan's Economy Ministry defended the semiconductor trade between the US and Taiwan, describing it as a mutually beneficial “win-win” model. Taiwan is home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), which produces semiconductors for major US companies such as Nvidia and Apple. TSMC’s revenue from North American buyers accounted for 70% of its total earnings in 2024. While Beijing claims Taiwan as part of its territory, the US continues to provide arms and engage in military cooperation with Taiwan.
MENAFN29012025000045015687ID1109143174
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.