US Imposes 20 Percent Tariff on Taiwanese Goods Targeting Semiconductor Sector Amid Global Trade Tensions
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US Imposes 20 Percent Tariff on Taiwanese Goods Targeting Semiconductor Sector Amid Global Trade Tensions
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According to multiple reports, the United States has now set a provisional 20 percent tariff rate on Taiwanese goods, following four rounds of negotiations and ongoing technical consultations between Washington and Taipei. President Lai of Taiwan recently addressed the public, stating that while the final meeting with the US hasn’t yet concluded, 20 percent is the effective provisional rate and is now shaping Taiwan’s export landscape. For context, this 20 percent rate is notably higher than the 15 percent negotiated recently for Japanese and South Korean goods, underscoring a tougher line from the US towards Taiwan at this stage.
Just in the past week, President Trump announced plans for additional tariffs directly targeting semiconductor imports, a sector that is essentially the backbone of Taiwan’s export economy. According to Focus Taiwan, these statements immediately rattled the Taiwan stock market—shares of major chipmakers like TSMC dropped sharply, dragging down the broader Taiex index and sparking real concerns among investors and analysts alike. The market response highlights just how sensitive Taiwan’s economy is to US tariff news; the contract chipmaker TSMC alone accounted for roughly 200 points of the Taiex’s recent decline.
These tariffs are part of a broader push by the Trump administration under Section 232 investigations, citing national security grounds. In April, the US launched an official investigation under the Trade Expansion Act of 1962, opening the door for tariff hikes specifically targeting sectors seen as critical, such as semiconductors and ICT products. Currently, about 30 percent of Taiwanese exports to the US are directly covered by the new 20 percent blanket tariff; however, industry participants expect more sector-specific duties to emerge—especially affecting advanced chips and server equipment.
The Taipei Times editorial argues that while a 20 percent tariff appears high, Taiwan’s leverage lies in its pivotal role in the global AI supply chain and deep partnerships with US tech firms like Nvidia and AMD. To mitigate the tariff impact, Taiwanese companies are actively expanding their US manufacturing footprint—TSMC is building six chip factories and related facilities in America, which could help dodge certain import tariffs in the years ahead.
Listeners should note that these tariff moves are part of a rapidly shifting global trade environment. President Trump has also finalized new reciprocal tariff deals with Japan and other partners, with Japan securing a lower 15 percent rate alongside major investment pledges to the US.
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