TAIPEI (Taiwan News) — Technalysis Research Chief Analyst and founder Bob O’Donnell said Thursday that US President Donald Trump’s tariffs against Taiwan would harm US consumers and the tech industry.

Trump contends that Taiwan stole the US tech industry, but industry experts have challenged that claim. On Jan. 27, he said he plans to impose tariffs on Taiwanese chips as high as 100%.

O’Donnell said he finds the policy proposal bewildering, adding that he did not believe the tariffs were necessary, per CNA.

The veteran analyst acknowledged the US wants to bring semiconductor manufacturing back home. The COVID-19 pandemic exposed weaknesses in the chip supply chain, and geopolitical risks reinforce the need for diversified chip production.

However, this is not something that can change overnight, O’Donnell said. He explained that semiconductor fabs require multi-billion-dollar investments and take years to become operational.

Furthermore, he said while the Chips and Science Act has provided subsidies to major semiconductor firms like Intel and TSMC to promote “Made in America,” even if these plants were to operate at full capacity, their short-term contribution would be small. TSMC’s US fabs are nowhere near as advanced as its facilities in Taiwan, he added.

Imposing tariffs on Taiwanese semiconductors would significantly harm all tech-related industries, O’Donnell said. He called the approach short-sighted.

O’Donnell explained that major semiconductor producers like Nvidia, as well as businesses relying on their chips would be affected. Additionally, the policy could have repercussions for the automotive industry, as modern cars also rely on chips.

Looking forward, O’Donnell said Taiwanese chips will continue to hold a significant share in the global market, but they will become more expensive. This means that the cost of all products relying on these chips will rise, he added.