Trump Attacks Taiwan Chip Dominance as New Tariffs Loom Despite Trade Deal cover art

Trump Attacks Taiwan Chip Dominance as New Tariffs Loom Despite Trade Deal

Trump Attacks Taiwan Chip Dominance as New Tariffs Loom Despite Trade Deal

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 US President Donald Trump has renewed his sharp criticism of Taiwan's semiconductor dominance, claiming the island "stole our chip business" from American giants like Intel, according to the South China Morning Post reporting on his Saturday press conference. This outburst came right after the US Supreme Court ruled 6-3 that Trump's sweeping tariffs under the 1977 International Emergency Economic Powers Act exceeded his authority, invalidating many import duties including the prior 20 percent rate on Taiwan.

Taiwan had just secured a key win with the Agreement on Reciprocal Trade signed February 12, slashing those IEEPA tariffs to 15 percent while granting Taiwanese semiconductors "most-favored treatment" under Section 232 national security measures, as detailed by Focus Taiwan and the Overseas Community Affairs Council. In return, Taiwan pledged a massive US$500 billion investment in the US to ease tensions.

But the landscape shifted fast. Trump invoked Section 122 of the Trade Act of 1974 for a new 10 percent global import surcharge effective February 24, 2026, lasting up to 150 days until July 24 unless extended by Congress, per the Trade Compliance Resource Hub's Trump 2.0 tariff tracker and a White House fact sheet. Exemptions shield Section 232 items like Taiwan's chips for now, and Premier Cho Jung-tai confirmed Saturday that negotiators are working to lock in those protections amid Trump's social media push to hike it to 15 percent immediately, as noted by Green Worldwide Shipping.

Scholars warn Taiwan, now the US's fourth-largest trade deficit source at nearly US$160 billion—fueled by AI chip and server demand—must brace for looming Section 301 probes targeting unfair practices and surpluses, Focus Taiwan reports. President Lien Hsien-ming of the Chung-Hua Institution for Economic Research urged preemptive strategies, while opposition KMT lawmakers call for renegotiating the ART deal still pending Taiwan's Legislative Yuan approval. Vice Premier Cheng Li-chiun stressed vigilant monitoring of Sections 122, 301, 232, and even Section 338 for up to 50 percent retaliatory duties.

Taiwan's chip firms are hedging by building factories in Arizona and Texas to dodge tariffs, Trump noted, heightening global supply chain jitters. As US policy evolves, will Taiwan's investments hold off escalation?

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