TAIPEI (Taiwan News) — Taiwan’s Ministry of Economic Affairs responded to US President Trump’s proposed tariffs announcement on Taiwan’s semiconductors on Tuesday, highlighting the complementary relationship between US and Taiwanese tech industries and underscoring the importance of continued collaboration.

During his remarks, Trump outlined plans to impose tariffs on foreign-produced computer chips, semiconductors, and pharmaceuticals. He pointed to the reliance of major US tech companies on TSMC for chip production.

“They left us and went to Taiwan,” Trump said. He suggested tariffs of “25%, 50%, or even 100%” to push companies to relocate manufacturing operations to the US.

In its response, the MOEA emphasized the longstanding complementary relationship between US chip design expertise and Taiwan’s advanced semiconductor manufacturing. This collaboration, the MOEA said, has fostered a mutually beneficial business model for both nations, per CNA.

TSMC has expanded its operations in the US, with a new factory in Arizona scheduled to begin production early this year. However, a majority of its manufacturing still takes place in Taiwan.

Most TSMC chips are not exported directly to the US. Instead, they are shipped to China and other Asian countries for assembly into consumer electronics before reaching US markets.

If implemented, tariffs on these chips could result in higher prices for a variety of consumer products, as the costs are typically absorbed by importers—usually US companies—who then pass them on to customers.

Economists caution that while tariffs are intended to boost domestic production, they may also drive up costs for US businesses and consumers reliant on imported chips.

The MOEA noted that it will closely monitor US policies moving forward. The ministry reiterated its commitment to protecting the strong economic ties between Taiwan and the US, emphasizing the need for cooperation to navigate global industry challenges.