Taiwan has been hit with a steep 32% tariff by the United States, sparking criticism from the island nation just weeks after announcing massive investments in U.S. manufacturing and energy projects. The announcement came as part of President Donald Trump’s latest tariff plan, which sent shockwaves through global markets and signaled a hardline stance on trade imbalances.
Taiwan’s government responded sharply to the move, calling the measure “highly unreasonable,” “unfair,” and “deeply regrettable.” President Tsai Ing-wen expressed concern over the decision’s potential ripple effects, stating, “We feel that these measures are unreasonable, and we are also worried about the possible impact on the global economy.”
The tariffs were announced despite a series of high-profile investment commitments by Taiwan in recent months. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, recently unveiled plans to expand its U.S. operations with an additional $100 billion investment. This builds on its existing $65 billion project in Phoenix, Arizona, bringing its total U.S. investment to an unprecedented $165 billion.
The expansion plan includes the construction of three new semiconductor fabrication plants, two advanced packaging facilities, and a cutting-edge research and development center. TSMC’s American customer base includes tech giants such as Apple, NVIDIA, AMD, Broadcom, and Qualcomm.
In the energy sector, Taiwan’s state-owned CPC Corporation signed a letter of intent last month to invest in the $44-billion Alaska LNG export project. CPC also committed to purchasing liquefied natural gas from the facility, marking a major step in energy collaboration between Taiwan and the U.S. CPC remains the only Asian company to publicly back the project, despite the U.S. government’s extended efforts to secure similar investments from Japan and South Korea.
The new tariffs, which exceeded market expectations, were particularly striking given Taiwan’s recent economic outreach. The 32% rate was among the highest imposed under the latest measures. While semiconductors were notably excluded from the list of tariffed goods, Taiwan’s trade surplus with the U.S.—driven largely by its chip exports—was cited as a key reason for the action.
President Trump has long criticized the U.S. trade deficit and has made it clear that even close partners will not be exempt from tariff enforcement if they contribute to what he considers an unbalanced trade relationship. Despite Taiwan’s strategic economic and geopolitical importance, the administration’s move appears to underscore a broader policy of reducing reliance on imports and bolstering domestic industry.
The tariff announcement has cast uncertainty over the future of Taiwan-U.S. trade relations, even as both countries deepen their economic and technological partnerships.
