Taiwan is rolling out a US$2.6 billion support package to help industries hit by the Trump administration’s new 32% tariffs on Taiwanese imports. Sectors like steel, machinery, automobile parts and home appliances are expected to be most affected. Semiconductors, Taiwan’s top export and a key pillar of its economy, have been spared for now, but Trump has warned that chip tariffs could be coming soon.
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00:00Taiwan's cabinet holds an emergency press conference to address the Trump administration's
00:05new 32% tariff on most Taiwanese goods entering the United States, announcing a $2.6 billion
00:12U.S. package to support industries harmed by the taxes.
00:16In the various export industries that our country exports to the United States,
00:20electronic information, steel, metal, machinery, cars, especially aircraft,
00:28building materials, and so on, as well as home appliances, these industries are currently estimated to have a
00:34significant impact on tariffs. The executive team has devised nine aspects and 20 measures
00:45to address the tariff.
00:54It's the strongest response yet from the government, whose reaction has been muted due to a national
00:59holiday. There was one notable exception to the tariffs, however, semiconductors, Taiwan's most
01:04valuable industry. In fact, semiconductors account for 60% of Taiwan's export value and 18% of its
01:12GDP. A single Taiwanese company, TSMC, makes nearly all the world's most advanced chips, many of which
01:19are critical to the biggest firms in the U.S., like Nvidia and Apple. But the reprieve may be
01:25short-lived. Trump says specific tariffs on sectors such as chips and pharmaceuticals are coming.
01:31The chips are starting very soon. We are looking at pharma right now, pharmaceuticals. It's a
01:38separate category, and we'll be announcing that sometime in the near future, not too distant future.
01:44That's under review right now. While the Trump administration's goal is to bring high-tech
01:48manufacturing back to the U.S., matching Taiwan's chipmaking capacity might not be so easy.
01:54It's silly to pretend that what TSMC does can be replicated in the short term. It's years and years
02:05to get to the point where other manufacturers can do what TSMC does, and TSMC has earned that spot.
02:13The tariffs may impact American consumers as well, raising prices on products like smartphones,
02:19computers and cloud-based services, something consumers might find hard to swallow.
02:24I think it's important for viewers to understand that the majority of people in the U.S.
02:29who voted, voted for this. The idea that, hey, we're being taken advantage of in the global
02:36economy. Fair people are going to watch this over time, and we have a self-correction mechanism in
02:44the U.S. It's called the midterm elections. The 32% tariffs take effect on April 9th,
02:50while those on chips are still in the works. Negotiations are sure to take place before then,
02:55and the question for Taiwan is, will the next round of tariffs hit it where it hurts the most?
03:00Klein Wong and Chris Gorin for Taiwan Plus.