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Trump Proposes Up to 100% Tariffs on Taiwanese-Made Chips

Donald Trump

Donald Trump has proposed imposing tariffs of between 25% and 100% on chips manufactured in Taiwan, including those produced by TSMC, the world’s largest chip manufacturer. This new threat is part of his ongoing strategy to reshape global trade relations, particularly with countries that do not meet his demands.

Trump’s Desire for U.S. Manufacturing

Trump Proposes Up to 100% Tariffs on Taiwanese-Made Chips

In his announcement, Trump explained that he wants companies to bring manufacturing back to the U.S., criticizing his predecessor’s CHIPs program, which offered subsidies to companies like TSMC to set up factories in the U.S. This program led to the establishment of new TSMC facilities in the country. Rather than offering incentives like the CHIPs program, Trump appears to be focusing on using threats and penalties to encourage domestic production.

Trump also expressed dissatisfaction with U.S. tech companies that manufacture chips through TSMC instead of relying on American firms, demonstrating a lack of understanding of the current chip manufacturing market.

Potential Global Impact of Tariffs

It remains to be seen whether this is just another bold statement from Trump or if the proposed tariffs will actually come into effect. If implemented, these tariffs could dramatically alter the traditionally friendly trade relationship between the U.S. and Taiwan. Taiwan is home to the production of many of the world’s most advanced chips, and placing tariffs on these imports could send shockwaves through the global chip market.

Additionally, it is important to note that TSMC’s chips produced in the U.S. are more expensive to manufacture than those made in Taiwan. Taiwan also restricts the production of its most advanced chips outside its borders. If these tariffs are enforced, the price of chips globally could rise significantly.

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