Get Instant Loan up to ₹10 Lakh!
Taiwan vows to address Donald Trump’s chip concerns, boost US investment amid US’ tariff pressure
- Taiwan’s President pledged to address US President Donald Trump’s concerns over the semiconductor industry. He committed to increasing US investment and procurement while also boosting Taiwan’s defense spending. This comes as Trump threatens to impose up to 100% tariffs on Taiwan-made chips.
Taiwan’s President Lai Ching-te has committed to addressing concerns raised by US President Donald Trump regarding the semiconductor industry. Lai announced plans to enhance US investment and procurement while also strengthening Taiwan’s defense spending.
His remarks came in response to Trump's directive to impose reciprocal tariffs on trade partners that tax US imports. Trump has also signaled intentions to raise tariffs on Taiwan-made semiconductor chips by up to 100%.
Addressing US concerns on semiconductors
Trump criticised Taiwan, claiming that the country had taken away the semiconductor industry that he wanted to restore in the United States. In response, Lai emphasised the importance of a globally integrated semiconductor supply chain.
“We are aware of President Trump’s concerns,” Lai stated after a National Security Council meeting. “Taiwan's government will communicate with the semiconductor industry to formulate strategies and engage in further discussions with the United States.”
Lai also proposed building a global AI chip alliance among democratic nations to ensure a resilient supply chain. Taiwan, home to TSMC, the world’s largest contract chipmaker and a key supplier for companies such as Apple and Nvidia, is a critical player in the industry.
TSMC's role and investments
TSMC has been making significant investments in the United States, including a $65 billion project in Arizona, initiated during Trump's first administration.
A senior Taiwan security official noted that if TSMC deemed it feasible to increase US investments, the government would assist in negotiations.
Countries that gave in to Trump’s tariff threats
Several countries have adjusted their trade policies or made concessions in response to tariff threats from Trump. His aggressive trade stance led to heated negotiations, retaliatory measures, and eventual compromises from key US trading partners.
Mexico: Countermeasures before agreement
Mexico, one of the US’s largest trading partners, initially retaliated against Trump’s tariff threats.
On February 1, 2025, Trump signed an executive order imposing a 25% tariff on Mexican goods, accusing the country of failing to combat drug trafficking.
In response, Mexican President Claudia Sheinbaum rejected the accusations, calling them "slander" and implementing Plan B, a set of economic countermeasures.
In a resolution on February 3, Trump suspended the 25% tariffs for 30 days after securing an agreement with Sheinbaum to strengthen border security.
Economists have warned that Mexico's agriculture and auto industries, heavily dependent on the US market, could face severe economic consequences if tariffs resume.
Canada: Retaliation followed by a pause
Canada also pushed back against Trump’s tariff threats before reaching a temporary resolution.
On February 1, 2025, in response to US tariffs, Prime Minister Justin Trudeau imposed 25% tariffs on $155 billion worth of American goods.
In a resolution, Trump paused tariffs on Canada for 30 days after a call with Trudeau. The two leaders agreed to tighten border controls to address migration and the fentanyl crisis.
Canada’s decision to negotiate a temporary halt suggests a willingness to avoid further economic disruptions, though the long-term trade relationship remains uncertain.
Colombia: Conceding to US demands
Unlike Mexico and Canada, Colombia opted for a conciliatory approach when faced with U.S. trade pressure.
On January 26, 2025: President Gustavo Petro barred two U.S. military planes carrying deported Colombians from landing.
In response, Washington threatened tariffs on Colombian exports, prompting an initial vow from Petro to retaliate.
In a resolution, Colombia later agreed to accept US deportees without delay, avoiding punitive tariffs.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Business NewsNewsWorldTaiwan vows to address Donald Trump’s chip concerns, boost US investment amid US’ tariff pressure
First Published:15 Feb 2025, 06:57 PM IST
- Top Gainers
- Top Losers
- 52 Week High