U.S. President Donald Trump announced new tariffs on Mexico, Canada, and China, set to go into effect this Tuesday. Having revealed that additional tariffs will be imposed on semiconductors, steel, and other products in the coming weeks, concerns have arisen that Taiwan’s semiconductors will be Trump’s next tariff target.
Economic Minister J.W. Kuo (郭智輝) pointed out that Taiwan’s economy has maintained a steady growth of 4.2% despite impacts on business operations as the result of massive challenges faced by the global economy at the Economic Ministry’s Lunar New Year gathering this Monday. Kuo said that Taiwan was able to overcome such challenges–including supply chain changes, inflationary pressure, and U.S. policy changes–because of everyone’s joint efforts.
As U.S. trade policy continues to affect the global economy, more challenges bring with it more opportunities in the new year, Kuo said, adding that Taiwan must plan ahead and provide more comprehensive support to its business owners and enterprises. Key issues needing address include the restructuring of the global supply chain, sustainable development, and the acceleration of digital transformation, according to Kuo.
Regarding the possibility that Taiwan’s semiconductors may become the next U.S. tariff target, officials pointed out that Trump’s tariffs on Mexico and Canada aim to curb the flow of drugs and undocumented immigrants into the United States. They also say that they’re aimed at encouraging manufacturers to invest in the U.S. and U.S.-made products, meanwhile TSMC has been investing in the U.S. since Trump’s first term. Should tariffs be imposed on chips, it wouldn’t be TSMC that’s affected, but Nvidia, Apple, AMD, and other U.S. clients.
Kuo maintains that economic development and social sustainability go hand in hand, and said he hopes everyone will keep up the pace, exploring and innovating so Taiwan’s economy can continue to maintain its competitive advantage.