US President Donald Trump criticized Taiwan’s semiconductor industry after the US Supreme Court ruled that his tariffs exceeded presidential authority under the 1977 International Emergency Economic Powers Act (IEEPA).
Trump accused Taiwan of “stealing” US chip business and pointed to Taiwanese companies opening factories in the US to avoid tariffs.
The 6-3 court decision invalidated many of Trump’s tariffs, which were initially imposed as temporary measures.
Taiwan’s exports to the US, especially in semiconductors, grew recently, with December shipments reaching nearly US$24.7 billion, surpassing China’s US$21.1 billion. The ruling may impact Taiwan’s export growth and influence ongoing US-China trade negotiations.
Key Highlights
Trump criticized Taiwan’s semiconductor industry after the Supreme Court invalidated his tariffs Taiwan’s semiconductor exports to the US exceeded $24.7 billion, surpassing China’s exports US shifts to Section 232 and Section 301 tariffs, targeting specific semiconductor items
The Trump administration describes the ruling as technical, limiting the use of IEEPA for revenue generation but not rejecting tariffs outright. Moving forward, the administration plans to use other legal tools like Section 232 and Section 301, which focus on national security and addressing unfair trade practices.
Section 232 sets a 25% tariff on certain semiconductors, including NVIDIA H200 and AMD MI325X, while offering tariff exemptions for certain Taiwanese investments in US semiconductor production.
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Despite efforts to onshore semiconductor production in the US, TSMC’s Arizona plant faces high costs, impacting profits. The US plans to move 40% of Taiwan’s supply chain to America, although Taiwan’s production remains significantly larger.
Source: South China Morning Post