Taiwan’s tech sector may dodge the worst effects of US President Donald Trump’s latest tariff threat, according to two scholars. The tariffs, which could be implemented as early as a few weeks after individual country reviews are completed by April, would likely have limited impact due to Taiwan’s unique export structure.
Chiang Min-hua, an adjunct fellow at the East-West Center in Washington D.C., noted that the US would implement the same tariff if Taiwan imposes tariffs on US ICT products. However, she also warned that such a system could drive up prices and shift government revenue sources from taxpayers to consumers.
Jeffrey Kuo, an economics lecturer at George Washington University, agreed that the impact of tariffs would be limited due to Taiwan’s wide range of exports related to machinery and electronic equipment. He emphasized that such tariffs would likely harm consumers and American brands, rather than benefiting US interests.
The scholars also highlighted that electronics components imported from Taiwan are crucial to the global supply chain, making a reciprocal tariff policy less effective. Furthermore, Kuo noted that there are few alternatives for these products, particularly in cases where companies like Tesla and Apple rely on chips produced by Taiwan Semiconductor Manufacturing Co. (TSMC).
While Trump’s tariff policy aligns with his campaign promises to cut taxes and reduce the federal budget deficit, scholars warned that such measures could have unintended consequences, including pushing Taiwan closer to China or isolating the US economy.
Source: https://focustaiwan.tw/business/202502140010