Taiwan to hold emergency discussions after Trump pledges tariffs on chips

Taipei, Jan. 29 (CNA) Taiwan's government will soon hold emergency discussions after U.S. President Donald Trump announced plans for sweeping tariffs on imported semiconductors, Premier Cho Jung-tai (卓榮泰) said Wednesday.

Speaking with reporters as he visited a temple on the first day of the Year of the Snake, Cho said the MOEA and related agencies had been closely watching Trump's possible tariff actions.

These agencies are set to meet soon to discuss what help the local semiconductor industry will need to react to Trump's possible massive tariffs, Cho said.

On Monday, Trump told Republican members of Congress of plans to impose sweeping tariffs on semiconductors, steel, aluminum, copper and pharmaceuticals "in the very near future."

"It's time for the United States to return to the system that made us richer and more powerful than ever before," Trump said at the Republican Issues Conference in Miami, Florida.

"They left us, and they went to Taiwan, which is about 98 percent of the chip business, by the way ... And we want them to come back, and we don't want to give them billions of dollars, like this ridiculous program [the U.S. CHIPS and Science Act] that Biden has," Trump said.

Trump's threats have raised fears that massive tariffs will hurt Taiwan's exports. The high-tech industry has served as the backbone of Taiwan's outbound sales with the electronics component and information and communications industries accounting for 65.2 percent of the country's total sales in 2024.

Cho said that in a fast-changing global market, Taiwan has to seek more cooperation with the world to maintain its lead in technology development.

Moreover, the changes are likely to provide Taiwan with a good opportunity for a tech upgrade, Cho said.

The premier tried to calm local industry players, saying Taiwan cannot be ignored in the global supply chain.

Cho's remarks echoed those made by Presidential Office spokesperson Karen Kuo (郭雅慧) Tuesday night.

Kuo said Taiwan and the U.S. have long become close partners in the tech arena, including semiconductor development, and such mutual trust and cooperation are expected to create a win-win situation.

Kuo added that the Presidential Office will continue to keep a close eye on U.S. policies and maintain close communications with Washington to reinforce the bilateral business ties under the existing sound foundation.

Meanwhile, Gordon Sun (孫明德), director of the Taiwan Institute of Economic Research's (TIER) Economic Forecasting Center, said the Trump administration would face difficulties in imposing tariffs on Taiwan's advanced chips as these products are irreplaceable.

While Trump said Taiwan had 98 percent of the chip business, Sun said that Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, is investing US$65 billion in the U.S. to build three advanced fabs in Arizona.

He suggested the local semiconductor industry wait to see what actions the U.S. takes before responding.