Taiwan vows to address Donald Trump’s chip concerns and boosts US investment within us ‘ tariff pressure

Taiwan’s President Lai Qingte has pledged to address concerns raised by US President Donald Trump regarding the semiconductor industry. Lai has announced plans to strengthen US investment and procurement while strengthening Taiwan’s defense spending.

His remarks came in response to Trump’s instructions to impose mutual tariffs on trading partners that tax US imports. Trump has also indicated that he intends to raise tariffs on Taiwan-made semiconductor chips by up to 100%.

Address our concerns about semiconductors

Trump criticized Taiwan and claimed that the country had taken away the semiconductor industry it wanted to recover in the United States. In response, LAI highlighted the importance of a globally integrated semiconductor supply chain.

“We are aware of President Trump’s concerns,” Lye said after a National Security Council meeting. “The Taiwanese government will be in touch with the semiconductor industry, develop strategies and engage in further discussions with the United States.”

Rai also proposed to build a global AI chip alliance between democracies to ensure a resilient supply chain. Taiwan, home to TSMC, the world’s largest contracted chip maker and the leading supplier of companies such as Apple and Nvidia, is a key player in the industry.

The role and investment of TSMC

TSMC has invested heavily in the US, including a $65 billion project in Arizona that was launched during Trump’s first administration.

A Taiwanese official noted that if TSMC determines it is possible to increase US investment, the government will support negotiations.

Countries succumbed to the threat of Trump’s tariffs

Several countries have adjusted or made concessions to their trade policies in response to tariff threats from Trump. His aggressive trade stance led to intense negotiations, retaliatory measures and ultimate compromises from major US trading partners.

Mexico: Pre-consensus measures

Mexico, one of the largest trading partners in the United States, initially retaliated against Trump’s tariff threat.

On February 1, 2025, Trump signed an executive order that imposes a 25% tariff on Mexican goods, accusing him of not fighting drug trafficking.

In response, Mexican President Claudia Sheinbaum refused the accusations, calling them “defamatory” and implemented a series of economic measures, Plan B.

In a February 3 resolution, Trump suspended 25% tariffs for 30 days after securing an agreement with Sheinbaum to strengthen border security.

Economists warn that Mexico’s agriculture and automotive industry, which relies heavily on the US market, could face serious economic consequences if tariffs resume.

Canada: Pause following retaliation

Canada also opposed the threat of Trump’s tariffs before reaching a temporary resolution.

On February 1, 2025, in response to US tariffs, Prime Minister Justin Trudeau imposed a 25% tariff on US products worth $155 billion.

In the resolution, Trump suspended tariffs in Canada for 30 days of calling for Trudeau. The two leaders agreed to strengthen border controls to address the migration and fentanyl crisis.

Canada’s decision to negotiate a temporary suspension suggests a willingness to avoid further economic disruption, although long-term trade relations remain uncertain.

Columbia: Accepts US demands

Unlike Mexico and Canada, Colombia chose a reconciliatory approach when faced with US trade pressures.

January 26, 2025: President Gustavopetro banned two US military planes from landing where Colombians were deported.

In response, Washington threatened tariffs on Colombian exports and urged them to retaliate their initial pledge from Peter.

In the resolution, Columbia later agreed to accept US deportation without delay, avoiding punitive tariffs.