Taiwan to Help Businesses Shift Supply Chains to US Amid High Import Duties

Taiwan will assist businesses in moving their supply chains to the US when necessary, away from areas where import duties may be high. According to Economy Minister Kuo Jyh-huei. Given their technological advantage, Taiwan anticipates that any tariffs imposed by the next administration of U.S. President-elect Donald Trump will have little effect on semiconductor exports, according to Economy Minister Kuo Jyh-huei.

The island is a vital component of the global technological supply chain for firms like Apple and Nvidia, and it is home to Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chipmaker in the world. However, Taiwanese officials have cautioned that impending Trump administration U.S. tariffs on all nations may limit economic development in the export-reliant nation this year.

Trump has promised to impose a 60 percent tariff on Chinese goods and a 10 percent blanket levy on all imports into the US from across the world. He specifically promised in late November to impose a 25 percent tariff on imports from Canada and Mexico upon his inauguration on January 20.

"For our semiconductors and advanced processes, there is an advantage of technological leadership and that cannot be replaced, and so the impact will be small," kuo said.

In the first half of this year, Taiwan will also open an office in Japan to assist Taiwanese companies looking to invest there and collaborate with the nation on AI and drones, he added.