Trump threatens TSMC with 100% tax
During a Republican National Congressional Committee event, U.S. President Donald Trump criticized China for alleged currency manipulation and issued a stark ultimatum to Taiwan Semiconductor Manufacturing Company (TSMC). Trump claimed he warned TSMC that it would face a 100% tax on its products if it did not establish manufacturing facilities within the United States. He contrasted his approach with that of President Joe Biden's administration, which had provided a $6.6 billion grant to TSMC to support semiconductor production in Phoenix, Arizona, asserting that he offered no financial incentives, only the tax warning, to encourage domestic investment.
"Right now, China is paying a 104% tariff. Think of it, 104%. Now, it sounds ridiculous, but they charged us for many items, 100%, 125%. Many countries, they've ripped us off left and right," Trump said.
"Our opponents are not afraid that our America First policies will fail. They're terrified that our strategy will succeed and we're going to get bigger and stronger and better as a party. And that's what's happening. And that is what's happening. It's going to be something, and I'm actually looking forward to the midterms. I really are. We're going to prove that all of their treasonous years of betrayal will not be forgotten because it's treason. What they did is treason," He added.
These developments have significantly impacted Taiwan's economy, with the stock market experiencing a nearly 10% decline—the steepest single-day drop ever. Major tech firms like TSMC and Foxconn were particularly affected, each seeing share prices drop close to the daily 10% limit.
Trump's remarks and the ensuing economic measures underscore the complexities of international trade relations and the challenges faced by global semiconductor supply chains amid geopolitical tensions.
