U.S. President Donald Trump recently announced that tariffs of at least 25% on semiconductors, automobiles, and pharmaceuticals could take effect as early as April 2. Taiwan’s experts cautioned on Thursday that Washington has yet to play its trump card, and Taiwan Semiconductor Manufacturing Co. (TSMC) may still face mounting pressure to expand its investment in the U.S.

The Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) Director-General Dr. Darson Chiu (邱達生) analyzed that Taiwan’s exports of automobiles, semiconductors, and pharmaceuticals are primarily intermediate goods, meaning the immediate impact of tariffs would be limited. However, Chiu stressed that Trump has yet to impose restrictions on TSMC’s upstream supply chain, including key equipment and materials. If such measures are implemented, TSMC could face even greater pressure to expand its U.S. footprint.

National Central University’s Research Center for Taiwan Economic Development CEO Dachrahn Wu (吳大任) pointed out that Trump’s approach involves imposing tariffs with one hand while lowering corporate taxes with the other, aiming to drive manufacturing back to the U.S. Although the latest round of tariffs may have a limited impact on Taiwan, Wu warned that if TSMC continues expanding its U.S. operations, supply chain investments could gradually shift from Taiwan to the U.S. in the mid-to-long term. This would reduce private investment in Taiwan, potentially hindering economic growth.