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  • President Donald Trump is back.

  • And so are his tariffs.

  • His latest move, a 25% tariff on steel and aluminum imports, has sparked fears that semiconductors could be next.

  • This follows a 10% tariff on Chinese goods that took effect on February the 4th, and a 30-day delay on new tariffs on Canada and Mexico.

  • At the center of Trump's chip tariff threat is Taiwan.

  • A global leader in chip making.

  • Trump has said he could impose tariffs as high as 100% on foreign chip makers, a move that could send shock waves through the global tech industry.

  • But is this really the way to bring chip production back to the US?

  • Semiconductor manufacturing has never been a strength of the United States.

  • But thanks to Taiwan's semiconductor foundry industry, many job opportunities have been created in the U.S., including in chip design and marketing for end products.

  • These are all areas where U.S. employment has increased.

  • Without semiconductor foundries, it would be difficult for the U.S. to have such a significant share in this sector.

  • Experts warn that heavy tariffs on semiconductors could backfire, disrupting global supply chains, slowing innovation, and ultimately hurting the US tech industry.

  • I believe the biggest victim could be the U.S. because, in the end, it's the consumers who will bear the cost.

  • The worst-case scenario is that TSMC passes costs onto their U.S. customers because it is impossible for the company to absorb them.

  • This means your iPhone and Nvidia products will be significantly more expensive.

  • I don't believe companies like Nvidia and Apple will sit back and do nothing - they will definitely protest.

  • Still, Trump has used tariffs as leverage, pressuring Canada and Mexico to take stronger action on border enforcement.

  • One of the things that makes President Trump, you know, the writer and author of the Art of the Deal, is that, um, he's not predictable.

  • Um, certainly President Trump utilizes all of the tools in his toolbox to make sure that America is in the strongest place possible.

  • I think at the end of the day, President Trump is the decider, and one of the tools that he absolutely utilizes is being unpredictable.

  • And I think that's a strength of his.

  • Some people are calling for cooperation over competition.

  • We need more semiconductor chips, uh, in this country, and we had a very wonderful partnership with Taiwan on doing that.

  • So I think this is the wrong time to put tariffs on semiconductor chips.

  • Uh, I think it's the wrong way to go, uh, I think that we need to have the partnerships between the US and Taiwan.

  • What does he want?

  • According to think tanks and industry observers, Trump wants to resolve an imbalance in trade between Taiwan and the US and push Taiwan's leading chip maker, TSMC, to honor its word to set up more wafer fabs in the US.

  • The question is, could Trump's hardline tactics work, or will it backfire and disrupt TSMC's operations in Arizona?

  • The world is watching.

President Donald Trump is back.

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