TAIPEI (TVBS News) — U.S. President Donald Trump plans to pursue semiconductor tariffs despite a 90-day pause in his reciprocal tariffs. Experts note that the Taiwan government's move toward "zero tariffs" could pressure local industries, from health supplements to textiles to automobiles.
Taiwan imports approximately US$46.5 billion (NT$1.5 trillion) worth of goods from the U.S., including semiconductor equipment and steel scrap. Of these imports, 62% currently enjoy zero tariffs, while the remaining 38%, estimated at US$17.6 billion (NT$581.7 billion), cover products like health supplements, agricultural and fishery products, textiles, and automobiles, according to the Office of Trade Negotiations (經貿辦).
Wang Jiann-chyuan (王健全), vice president of the Chung-Hua Institution for Economic Research (中經院), explains, "The Taiwan government has made significant efforts, including reducing tariffs to zero, Taiwan Semiconductor Manufacturing Company's (TSMC, 台積電) investment in the U.S., and commitments to reduce trade deficits, including military purchases and agricultural products."
After Taiwan and the U.S. initiated tariff negotiations last weekend, Commerce Secretary Howard Lutnick indicated that smartphones, computers, and other electronics will face individual tariffs alongside semiconductors, potentially taking effect in one month.
Trump's "America First" trade policy aims to adjust the U.S. economic structure by addressing trade deficits through reciprocal tariffs, achieving fair trade, and promoting reindustrialization. Tan Ching-yu (譚瑾瑜), the Research Division 9 director of the Taiwan Institute of Economic Research (TIER, 台經院), notes, "The primary goals are to reduce the U.S. trade deficit, government deficit, and foreign debt, with a focus on high-quality procurement beneficial to Taiwan."
Experts urge that after Trump's reciprocal tariffs are suspended for 90 days, Taiwan must renegotiate with the U.S., considering strategies like expanding U.S. procurement, reducing trade deficits, and increasing U.S. investments amid global supply chain realignment.