Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, supplies chips to major technology companies including Nvidia.
Taiwan’s Cabinet is continuing negotiations with the US to secure more favourable tariff rates following the imposition of a 20% levy by US President Donald Trump, Vice-Premier Cheng Li-chiun said on 11 August 2025.
Cheng stated that Taiwan aims to obtain a better and more reasonable tariff rate and is prepared to update Taiwan’s Parliament on the progress of talks.
Taiwan holds the sixth-largest trade deficit with the US, with 90% attributed to semiconductors. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, supplies chips to major technology companies including Nvidia.
Tariff rates for semiconductors, electronics, and information and communication technology products, which constitute the majority of Taiwan’s exports to the US, will be subject to separate sector-specific tariffs that have yet to be determined.
Earlier, Taiwan President Lai Ching-te stated that the US government’s new 20% tariff on Taiwanese imports, imposed by a recent executive order from President Donald Trump, is “temporary” and that Taiwan plans to negotiate for a lower rate.
