TAIPEI (Taiwan News) — Premier Cho Jung-tai (卓榮泰) said Wednesday the government may offer help to companies threatened by Donald Trump's proposed tariffs on semiconductors.

The US president on Monday announced plans to impose tariffs on imported chips, pharmaceuticals, and steel, Reuters reported. He claimed a "25%, 50%, or even 100% tax” could force companies to manufacture these products in the US.

Cho responded, "I would like to reassure our compatriots that Taiwan's position in the world's industrial chain is not to be ignored and that we will continue to maintain such an advantage." 

He added that the economics ministry and other departments would examine whether to implement more cooperative plans and future assistance programs for the industrial sector. 

The world's largest contract chipmaker TSMC has declined to comment on Trump's tariff threats. Economics Minister Kuo Jyh-huei (郭智輝) said he expected Taiwan’s semiconductor exports to only face a small impact given their technological superiority. 

Economists caution that while tariffs, or a tax on imported goods, are meant to boost domestic production, they are often paid for by importers, who pass the costs onto consumers through increased prices. The tariffs on semiconductors, if implemented, could drive up prices for consumer products.