TAIPEI (Taiwan News) — US President Donald Trump announced a 32% tariff on Taiwanese goods on Wednesday.

The move comes as Trump seeks to reduce trade deficits with other nations. The president targeted Taiwan due to its 64% tariff on US goods, CNA reported. 

Taiwan became the US’ seventh largest trade partner last year. Taiwan's exports to America increased to US$116.26 billion (NT$3.85 trillion). Exports primarily comprised steel products, automated data processing equipment, and computer components and parts.

Last month, TSMC said it would build three more chip fabs, two advanced packaging facilities, and an R&D center in Arizona.  

In an executive order, Trump said the huge disparities in trade “constitute an unusual and extraordinary threat to the national security and economy of the United States.”

Other countries were also slapped with higher duties, including China (34%), South Korea (25%), Vietnam (46%), Japan (24%), and Thailand (36%), beginning April 9. This is in addition to a baseline 10% tariff across the board, to take effect April 5.

Earlier this week, China, South Korea, and Japan agreed to address Trump’s tariffs together. Others, like Canada and Mexico, have said they would announce retaliatory tariffs.