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Chips On The Table, Taiwan Seen Avoiding The Worst US Tariffs


Taiwan falls under the 15 per cent of the world Trump has flagged for its trade imbalance with the US, so tariff risk still looms in coming days.

Taiwan is expected to avoid the brunt of US President Donald Trump’s wave of global import tariffs next week because the island’s top chipmaker has pledged billions of dollars in US investments, according to the assessments of two international financial institutions. Analysts from ING and Morgan Stanley said in separate research reports that earlier pledges by Taiwan Semiconductor Manufacturing Company (TSMC) to invest in chip production in the US would probably soften Trump’s stance. “It is possible that this high-profile announcement may have also brought Taiwan enough goodwill to soften or avert tariffs,” Dutch financial services corporation ING said in a Thursday research note.

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