Taiwan's Ministry of Economic Affairs (MOEA) announced on February 2, 2025, that it will engage in ongoing discussions with the US to protect mutual industrial and national interests, following US President Donald Trump's global tariff initiatives and potential tariffs on Taiwanese semiconductor chips.
According to United Daily News, Taiwan's Presidential Office emphasized the longstanding cooperation and trust between Taiwan and the US in the semiconductor sector, highlighting their mutually beneficial relationship. The office stated that Taiwan will maintain close communication while monitoring US policy developments. The Executive Yuan has underscored Taiwan's vital position in global supply chains, with Vice Premier Li-Chun Cheng leading a US-Taiwan task force to track US policy changes following Trump's election.
Trump's recent executive order implements a 25% tariff on Canada and Mexico beginning February 4, 2025, along with a 10% tariff on China. His expressed intention to impose tariffs on Taiwanese semiconductor chips has sparked industry-wide concern.
The MOEA reported that Taiwan's 2024 investments and exports to Mexico concentrated primarily in the electronics manufacturing services (EMS) sector, with the US market remaining the primary export destination. Current data shows more than 300 Taiwanese companies have established operations in Mexico, including industry leaders Foxconn, Pegatron, Wistron, Quanta, Compal, and Inventec.
To support manufacturers, the MOEA is committed to helping Taiwanese businesses adapt their production strategies and investment plans. The ministry plans to organize delegations for events such as SelectUSA, facilitating connections between Taiwanese businesses and US local government support to develop mutually beneficial supply chains.
The ministry emphasized that Taiwan and the US maintain a complementary partnership based on democratic values and supply chain cooperation. While the US excels in design, Taiwan's manufacturing expertise creates an advantageous collaboration. Additionally, Taiwanese-produced chips serve as intermediate components rather than finished products, with US companies comprising the main customer base.
Speaking to CNA on February 1, 2025, macroeconomist Henry Wu warned that increased tariffs on Taiwanese and other foreign semiconductors would prove counterproductive for Trump's objectives. Wu explained that such measures would force Taiwanese chip suppliers to transfer additional costs to US clients and consumers, potentially triggering another inflationary wave.
Stephen Ezell, vice president for global innovation policy at the Information Technology and Innovation Foundation, cautioned that Trump's proposed tariff strategy for attracting chip manufacturing to the US would prove ineffective. Ezell noted that if the US imposes 100% tariffs on Taiwanese chips while maintaining lower tariffs for other countries, Taiwanese manufacturers might relocate their facilities to alternative locations rather than the US.