Taiwan Prepares for Trump’s Tariffs, and a Changed Washington

Published On Feb 13, 2025, 3:12 AM

Taiwanese officials are seeking to maintain strong ties with the U.S. under President Trump's second term, which is characterized by a more transactional approach to foreign relations. Concerns are rising over potential U.S. tariffs on semiconductors, which could impact Taiwan's economy and its semiconductor manufacturing sector. Taiwanese leaders are advocating for further cooperation and investment in various sectors, including energy and semiconductors, as they prepare for possible changes to their relationship with the U.S.

Stock Forecasts

TSM

Negative

The current uncertainty in U.S.-Taiwan relations, especially regarding potential tariffs on semiconductors, can negatively impact Taiwanese semiconductor stocks. Companies like TSMC (Taiwan Semiconductor Manufacturing Company) heavily rely on their relationship with the U.S. for business. Any tariffs could pose a significant challenge to their operations. Therefore, investors may want to watch for a decline in TSMC's stock price as the situation unfolds.

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Shares in Asian manufacturers tumbled on concern that tariffs will hurt trade in North America and disrupt global supply chains.

Stocks failed to continue Wednesday's rally as retail sales and fresh earnings from big banks took focus.

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