On Wednesday, Trump announced the embrace of 100 % duties of imported chips and semiconductors. This action – according to the US administration – is to be a response to “sabotage of the American semiconductor industry”.
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As Liu explained during a briefing in the Taiwanese parliament, The exclusion of TSMC from new customs loads results from the fact that the company already has production plants in the United Stateswhich makes it an important economic partner also for Washington himself.
TSMC, as the world's largest producer of integrated circuits and the pillar of the Taiwan economy, has already taken preventive measures. In March 2025, the company announced investments worth $ 100 billion in the development of factories in the USA. This step was to both secure its position on the American market and reduce the risk of trade war.
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The rest of the sector looks anxiously
Although TSMC will avoid a direct impact in the form of duties, other Taiwanese companies from the semiconductor sector may feel the negative effects of the new commercial policy. The Taiwan government has announced ongoing monitoring of the situation and the preparation of a package of aid – both short -term and medium -term – for other entities.
Taiwan does not remain passive on other fronts. The island authorities have declared an increase in the import of American energy carriers and an increase in defense expenditure. This is to be an element of a wider strategy to avoid further trade restrictions from Washington.
The new customs tariffs are not limited to the chip sector. Last week, President Trump announced a 20 % duties for a wide range of Taiwan exports to the USA. Taiwan President Lai Ching-Te announced a continuation of talks with the American administration, counting on their abolition or at least alleviating.
