“THIS IS THE CEILING”
Taiwan is a global powerhouse in chip manufacturing, with more than half the world’s semiconductors and nearly all of the high-end ones made there.
The owner of a Taiwanese machinery exporter to the United States said he was worried that lower tariff rates on Japan and South Korea – 15 per cent – would advantage his competitors there.
He told AFP the recent appreciation in the Taiwan dollar against the greenback had also “put a lot of pressure on us, creating a double whammy”.
The uncertainty over tariffs was hurting US sales, said textile producer Eddie Wang, with clients “feeling overwhelmed” and reluctant to place orders.
Soaring demand for AI-related technology has fuelled Taiwan’s trade surplus with the United States – and put it in Trump’s crosshairs.
Around 60 per cent of Taiwan’s exports to the United States are information and communications technology, which includes chips.
In a bid to avoid the tariffs, Taipei has pledged to increase investment in the United States, buy more of its energy and increase its own defence spending.
Economist Sun Ming-te said the 20 per cent levy was “probably the best outcome Taiwan can achieve with the US under the current conditions.”
“This is the ceiling, and it can go lower in the future,” Sun, from the Taiwan Institute of Economic Research, told AFP.
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