On July 31, President Donald Trump signed an executive order introducing new ‘reciprocal tariffs’ targeting various nations. Notable is the 20% tariff imposed on Taiwanese goods, which contribute significantly to the world’s semiconductor production. This change arises amidst a perceived threat to U.S. national security due to persistent trade deficits.

Key Details:

• Tariff Rates: Trump labeled these tariffs an essential measure against unfair trade practices.
• Taiwan’s Situation: Lai Ching-te mentioned this 20% tariff is not final, indicating potential for negotiation and reduction from the previous 32%.

Semiconductor Plant (Image credit: BRENDAN SMIALOWSKI/AFP via Getty Images)

The executive order aims to bring about fairer trade conditions and has generated significant discourse regarding its implications for the global semiconductor market.