Trump tariffs on Taiwans TSMC

[bssunilreddy]

It seems like TSMC's recent deal with the Trump administration won't completely remove the dangers of tariffs, as according to WIRED, citing unnamed sources, Trump could potentially impose additional taxation on chips made in Taiwan, but in an interesting manner. Instead of just taxing chip imports, the US might impose tariffs on the products using the chips, which means all consumer devices employing TSMC's semiconductors could get expensive, up to 100%, which will be devastating for the consumer industry.

Given that the Trump administration imposes tariffs on devices employing Taiwan chips, every mainstream tech product could see a price hike of as high as 100%. This move does make sense, given that the US imports "packaged" products using TSMC's chips, not the semiconductor itself. But for the average consumer, this is awful news and will likely disrupt the technology markets.

Source: Trump tariffs on Taiwans TSMC (wccftech)

 

[inapis]

100% price hike is too much. It will kill a lot of products/companies. I don't envision that happening. And for smaller hikers, at least in the short term, I think companies will absorb the tariffs. In the long run, consumers would be f**ked. And with the depreciating INR against USD, we would be more thoroughly f**ked.

 

[?dOuBtFiRe?]

It might be 100% of the price of TSMC Chip and not the price of product as a whole.

 

[bssunilreddy]

It might be 100% of the price of TSMC Chip and not the price of product as a whole.

No
Trump administration wants to impose 100% tariffs on any product which uses TSMC or taiwan chips.

 

[blr_p]

No
Trump administration wants to impose 100% tariffs on any product which uses TSMC or taiwan chips.

Try posting from another source or wait for more developments

One you posted is speculating and not reliable

 

[t3chg33k]

TSMC announced the $100 bn investment to counter the tariff threat.

Trump announces Taiwanese chip giant’s $100bn investment in US plants

President says TSMC won’t have to pay tariffs and encourages other semiconductor companies to build in US

www.theguardian.com

But they also don't want to bring the latest node to the US because they know it will weaken Taiwan politically.

Taiwan vows most advanced tech will not go to US under $100bn Trump deal

Country’s government says deal with TSMC needs assessment as opposition claims it will reduce defences

www.theguardian.com

The investment will probably be enough to placate Trump for the time being, but TSMC has already made it clear that even the US facilities cannot cope with the entire fabrication process.

 

[ibose]

Why do I get the feeling that all these tariffs will turn out to be all bark and no bite ? While we have to see who blinks first, if it does happen and extend over time, everyone has something to lose.

 

[t3chg33k]

Why do I get the feeling that all these tariffs will turn out to be all bark and no bite ? While we have to see who blinks first, if it does happen and extend over time, everyone has something to lose.

It is a bit ironic that you used that turn of phrase as there was an ET article on this a few days back.

Donald Trump's bite is worse than his bark

Trump has implemented 25% tariffs on imports from Canada and Mexico, and increased tariffs on China to 20%. His aggressive policies are straining US relations with NATO and Europe, while retaliatory measures from affected countries are expected. Trump's actions risk slowing global trade and GDP...

economictimes.indiatimes.com

 

[ibose]

It is a bit ironic that you used that turn of phrase as there was an ET article on this a few days back.

Donald Trump's bite is worse than his bark

Trump has implemented 25% tariffs on imports from Canada and Mexico, and increased tariffs on China to 20%. His aggressive policies are straining US relations with NATO and Europe, while retaliatory measures from affected countries are expected. Trump's actions risk slowing global trade and GDP...

economictimes.indiatimes.com

I know and read that. Let's wait and watch. He has already reversed some of the tariff decisions in response to the market downfall.

 

[blr_p]

Why do I get the feeling that all these tariffs will turn out to be all bark and no bite ? While we have to see who blinks first, if it does happen and extend over time, everyone has something to lose.

Think of it as a game of chicken

Every one has something to lose but who loses more blinks first and in every case.

This is why I'd be surprised if they even happen as I expect countries to placate him in some way.

eg. He's no longer going to use tariffs with Mexico.

 

[inapis]

Even in his last term there was a of back and forth. There was a lot of signalling so that trump can get his political brownie points but nothing materially changed on the ground.