TAIPEI (Taiwan News) — US President Donald Trump said on Tuesday that he will impose a 25% tariff on semiconductors, which will likely apply to those made in Taiwan.
Speaking to reporters in Florida, Trump said he plans to impose a tariff “in the neighborhood of 25%” on imported automobiles, per The Guardian. He would also impose a “25% or higher” tariff on pharmaceuticals and semiconductors, which he said would “go very substantially higher over the course of a year."
Trump said he would announce the tariff rates for automobiles on April 2. He did not give a timeline for an announcement on pharmaceuticals and chips.
Trump said he hopes to give foreign manufacturers time and opportunities to set up production in the US. He said as long as companies manufacture in the US, they would not be subject to tariffs.
He mentioned that some of the world’s largest corporations would announce their US investment plans in the coming weeks, per Reuters.
On Jan. 27, Trump announced plans to impose “25%, 50%, or even 100%" tariffs on Taiwan-made chips.
Taking aim at Taiwan's chips again on Friday, Trump said, “Right now, everything is made in Taiwan practically,” per PC Magazine. “Taiwan took our chip business away," he said, blaming Taiwan for the decline in US chip production.
Trump demanded that TSMC relocate all chip manufacturing to the US. He said, “We had Intel, we had these great companies that did so well, and it was taken from us. And we want that business back. We want it back in the United States."
TSMC is reportedly considering three measures to prevent Trump from levying tariffs on the chip maker. One option is a compromise in which TSMC accelerates the timeline for bringing advanced manufacturing to its Arizona facility. A second option could have TSMC commit to additional investments in the US.
According to sources familiar with the matter, under a third option, TSMC’s board may also decide to establish advanced packaging capabilities in the US, a critical step in producing cutting-edge chips, which TSMC currently keeps in Taiwan.
