Taiwan's Economics Minister Kuo Jyh-huei has expressed optimism regarding the impact of tariffs proposed by U.S. President-elect Donald Trump, particularly on the semiconductor sector. Kuo stated on January 10, 2025, that Taiwan expects minimal effects from the upcoming U.S. tariffs on semiconductor exports, attributing this resilience to the island's technological superiority in the industry [1f1e688a].
Trump's administration plans to implement a 10% tariff on global imports and a substantial 60% tariff specifically on Chinese goods, alongside a 25% tariff on imports from Canada and Mexico, starting January 20, 2025 [1f1e688a]. Kuo emphasized that Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, is well-positioned to navigate these changes due to its technological leadership [1f1e688a].
In light of the tariffs, Kuo mentioned that Taiwan intends to assist local companies in relocating their supply chains to the U.S. to mitigate potential impacts. Additionally, Taiwan plans to establish an office in Japan to enhance investment and cooperation in emerging technologies such as artificial intelligence (AI) and drones [1f1e688a].
Previously, Kuo had warned that while Trump is likely to primarily target China with these tariffs, the repercussions could still affect Taiwan's automotive sector, which is also sensitive to U.S. trade policies [78e99f5e]. The ongoing discussions surrounding Trump's tariffs have already sparked significant debate in the U.S., particularly regarding their potential impact on domestic industries, including steel. President-elect Trump's proposed tariffs range from 20% to as high as 60-100% on imports, especially targeting Chinese goods. While some experts believe these tariffs could provide a modest boost to the domestic steel industry, they caution that the overall employment levels in steel mills have remained stagnant despite price fluctuations [f80cd684].
Kyle Handley, an economist from UC San Diego, noted that previous tariffs have not significantly increased employment in the steel sector, which has hovered around 80,600 workers [f80cd684]. Meanwhile, Philip Bell, president of the Steel Manufacturers Association, supports stronger tariffs, arguing they could benefit domestic producers, although experts warn of potential price spikes that could negatively impact consumer spending [f80cd684].
As the U.S. navigates these proposed changes, the implications for Taiwan's economy and its sectors, particularly semiconductors and automotive, remain a focal point of concern. The interplay between U.S. tariffs and global trade dynamics raises significant questions about the future of trade relations and economic policies [78e99f5e][f80cd684][1f1e688a].