Taiwan Faces Trade Challenges Amid Trump's Tariff Threats

Taiwan faces potential economic challenges as U.S. President Donald Trump threatens tariffs on semiconductors. Premier Cho Jung-tai notes Taiwan's vital role in global tech supply chains and plans to assess support for the domestic industry. TSMC's investment in a U.S. factory highlights its strategic importance.

Taiwan's government is set to evaluate the need for support of its domestic industry following threats by U.S. President Donald Trump to impose tariffs on semiconductors, according to Premier Cho Jung-tai's announcement on Wednesday. Taiwan Semiconductor Manufacturing Co. (TSMC), as the world's largest contract chipmaker, underscores the island's integral role in technology supply chains.

Trump announced on Monday his intention to introduce tariffs on imported chips, pharmaceuticals, and steel to encourage domestic production in the United States. Responding to these developments, Premier Cho indicated that Taiwan's economy ministry is closely monitoring the situation and considering further cooperative measures for the industrial sector to mitigate potential impacts.

TSMC's announcement in 2020 to build a factory in Arizona, with an investment now totaling $65 billion, marks a significant move in global tech supply chain dynamics. While Taiwan's economy minister expects minimal impact from the potential tariffs due to Taiwan's technological edge, the growing trade surplus with the U.S. and persistent trade deficit concerns remain significant issues.

(With inputs from agencies.)