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Trump Threatens TSMC with 100% Tax Over U.S. Manufacturing Expansion

Taiwan engages in urgent tariff negotiations with the U.S. as Trump criticizes subsidies and TSMC commits $100 billion to U.S. facilities.

US President Donald Trump holds a chart as he delivers remarks on reciprocal tariffs during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, on April 2, 2025.
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TSMC's logo is seen at the TSMC Museum of Innovation in Hsinchu, Taiwan, May 29, 2024. REUTERS/Ann Wang/File Photo
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Overview

  • President Donald Trump has threatened Taiwan Semiconductor Manufacturing Company (TSMC) with a tax of up to 100% if it does not expand its manufacturing operations in the United States.
  • TSMC recently announced a $100 billion investment plan to build five additional chip factories in the U.S., reinforcing its commitment to bolstering domestic semiconductor production.
  • Taiwan is actively negotiating with the U.S. to resolve tariff disputes, with officials emphasizing strategic communication and proposals to strengthen bilateral trade ties.
  • In response to market instability linked to the tariff tensions, Taiwan has activated a $15 billion stock stabilization fund to restore investor confidence.
  • Trump has criticized the Biden administration's $6.6 billion subsidy to TSMC's U.S. operations, arguing that such financial aid is unnecessary for companies already expanding domestically.