TAIPEI (Taiwan News) — US President Donald Trump’s 32% tariffs on Taiwan could significantly impact the country’s multi-billion-dollar computer and server industry.
Trump on Wednesday announced reciprocal tariffs on imports from more than 180 countries, ranging from 17% to 49%, with a baseline 10% across the board. China was hit with a 34% tariff, the European Union 20%, Japan 24%, and Taiwan 32%.
According to CNA, Taiwan’s exports to the US in February surged to US$11.77 billion (NT$389.82 billion), a 65.6% year-over-year increase. The Ministry of Finance attributed this to growing AI demand and a wave of orders placed in anticipation of the new tariffs, per Tech in Asia.
Computers and related units led the way, totaling US$6.83 billion (NT$226.2 billion), followed by computer accessories at US$649 million and integrated circuits at US$546 million.
For all of 2024, Taiwan’s top export to the US was computers and related components, which reached US$51.49 billion—a 140.29% increase. Integrated circuits came second at US$7.4 billion, rising 111.66% and making up 6.65% of total exports.
Despite Taiwan’s global strength in semiconductor manufacturing, direct chip exports to the US remain relatively low, CNA noted. Most AI and smartphone chips are shipped first to countries like Mexico, Vietnam, Thailand, or India for assembly before being exported to the US
Last year, Taiwan exported US$165 billion worth of semiconductors, with more than half—US$85.26 billion—going to China. Other major export destinations included Singapore (US$21 billion), South Korea (US$13.4 billion), and Japan (US$10.4 billion).
Tariffs function as import taxes applied to goods from abroad. In this case, US companies bringing in products from Taiwan will bear the cost of the increased rate. The extent to which this may impact Taiwan’s exports to the US is still unclear.
