TAIPEI (Taiwan News) — Pegatron Chair Tung Tzu-hsien (童子賢) said on Monday that Trump’s fluctuating tariff policy could cause an electronics products shortage in the US.

Tung said tariff policies have disrupted retailers' shipping decisions. "Within two months, shelves in the United States ... might resemble those in third-world countries, where people visit department stores and markets only to find empty shelves," per Reuters.

On Tuesday, Tung appeared at a venture capital forum in Taipei, where he reiterated his beliefs in media interviews. Tung said that disruptions to production or distribution will affect supply chains and business operations, per CNA.

For example, Tung said food and beverages typically have a shelf life of three to five days, with uncertainty leading businesses to defer materials. While electronic products last longer, he warned that poor sales over three to five months would lead prices to fall. New integrated circuits would emerge, making older IC stocks difficult to sell.

Tung said the global division of labor and cooperation worked well in the past. With repeated tariff policies, businesses are finding it difficult to plan product distribution for next month or the next quarter because tariff rates change every week, or two or three times a month.

According to Tung, Taiwan has companies engaged in manufacturing, with orders facing uncertainty. The WTO’s Information Technology Agreement led to digital products having zero tariffs. When products began to sell out, a restocking decision would be made.

With high economic uncertainty, Tung warned that not only will food shelves be empty, but the electronic product shelves may also be empty in two or three months. Factories will need to evaluate whether to continue production.

Tung said he believes previous tariff negotiations have been used to reach an agreement. If this causes more speculation between producers and distributors, previously relied upon business models could be disrupted.