Taiwan expects small impression from Trump tariffs on chip exports

By Wen-Yee Lee

TAIPEI (Reuters) – Taiwan solely expects a small impression from any tariffs imposed by the incoming authorities of U.S. President-elect Donald Trump on semiconductor exports given their technological superiority, Financial system Minister Kuo Jyh-huei mentioned on Friday.

House to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), the island is a key hyperlink within the international know-how provide chain for firms comparable to Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA).

However Taiwanese policymakers have warned new U.S. tariffs towards all international locations from the Trump administration may curb financial progress this yr for the export-dependent economic system.

Trump has pledged a blanket tariff of 10% on international imports into the US and a far greater 60% tariff on Chinese language items. In late November, he particularly pledged a 25% tariff on imports from Canada and Mexico when he takes workplace on Jan. 20.

Requested at a information convention in regards to the impression on Taiwan’s export orders of Trump’s tariffs, Kuo mentioned it might not a lot have an effect on the chip sector.

“For our semiconductors and superior processes, there is a bonus of technological management and that can’t be changed, and so the impression can be small,” he added.

Taiwan may also assist firms relocate provide chains to the US as wanted, away from the place there is likely to be excessive import tariffs, Kuo mentioned.

“Now we see that we should always have the ability to develop the aerospace provide chain business in the US, and do some becoming a member of up with the U.S. aerospace firms, in order that a few of Taiwan’s aerospace analysis and improvement centres may be moved to there.”

Taiwan may also arrange an workplace in Japan within the first half of this yr to assist Taiwanese companies make investments there, and cooperate with the nation on AI and drones, he added.