Trump threatens 100% tariffs on Taiwanese chips “`

The White House also intends to levy tariffs on pharmaceuticals and steel to incentivize domestic production.

Former US President Donald Trump announced plans to impose tariffs of up to 100% on imported chips and semiconductors from countries like Taiwan. He also vowed to implement broad tariffs on pharmaceuticals and steel to encourage US-based manufacturing.

Addressing Republicans on Monday, Trump stated the administration would enact these tariffs “in the very near future” to bring production of these essential goods back to the United States.

Trump contended that computer chip and semiconductor production had shifted to Taiwan, which he claimed accounts for approximately 98% of the global chip market.

“And we want them to come back, and we don’t want to give them billions of dollars, like this ridiculous program that Biden has,” Trump said.

He criticized former President Joe Biden’s program providing subsidies to chipmakers such as Intel for domestic production. Biden’s CHIPS and Science Act, signed in 2022, allocated $53 billion in subsidies to boost US competitiveness in the microchip sector and counter China’s influence.

These remarks are the latest in a series of trade threats from Trump. He also threatened 25% tariffs on imports from Canada and Mexico unless they address US concerns about border security and drug trafficking.

Responding to Trump’s tariff threats on Tuesday, Taiwan’s Economy Ministry asserted that semiconductor trade between Taiwan and the US is mutually beneficial, characterizing it as a “win-win” situation.

Home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), the island is crucial to the global technology supply chain.

“Taiwan and the US semiconductor and other technology industries are highly complementary to each other, especially the US-designed, Taiwan-foundry model, which creates a win-win business model for Taiwan and US industries,” the Taiwanese Economy Ministry stated, as reported by Reuters.

TSMC manufactures semiconductors for major US clients, including Nvidia and Apple. In 2024, North American customers accounted for an estimated 70% of TSMC’s revenue, according to Reuters.

Beijing considers Taiwan part of its territory under its ‘One China’ policy and opposes foreign interference. While the US officially adheres to the ‘One China’ policy, it continues to provide arms to Taiwan and engages in military cooperation with the Taiwanese government.