Taiwanese Vice President Bi-khim Hsiao has expressed her stance on the US imposition of Section 232 tariffs for the first time, pointing out that the US and Taiwan ultimately have the same goal.
Section 232 tariff investigation ongoing
The US Federal Government, under Section 232 of the Trade Expansion Act, imposed a 25% import tariff on steel and aluminum products, cars, and auto parts due to national security. Starting August 1, a 50% tariff will also be imposed on copper products. At present, semiconductors are temporarily exempted from Section 232 tariffs, pending the results of an investigation by the US Department of Commerce (DOC).
Huai-shing Yen, the deputy trade representative at the Office of Trade Negotiations under the Executive Yuan in Taiwan, said in Taiwan's Legislative Yuan that the DOC is leading the Section 232 investigations and the findings will be reported to US President Donald Trump. Taiwanese officials have already expressed to the DOC that imposing Section 232 tariffs on Taiwanese semiconductors could undermine the cooperative relationship between the US and Taiwan in the semiconductor industry.
In response to questions from foreign journalists stationed in Taiwan, Vice President Hsiao said that whether the discussion is about reciprocal tariffs or the Section 232 investigation on semiconductor trade, the ultimate goal is the same—to create prosperity through reciprocity.
Taiwan's competitive, unique ecosystem
Hsiao pointed out that Trump has once again emphasized his goal to "make America great again," and, similarly, Taiwan's goal is to become stronger. A strong and economically powerful Taiwan is beneficial to the world, as Taiwan has long been a reliable and sustainable contributor to the global supply chain.
In response to foreign media inquiries regarding whether Taiwan is worried about losing its strategic advantage in the global semiconductor industry with TSMC building factories overseas, Hsiao said that manufacturers have established a very robust industry ecosystem in Taiwan, made up of thousands of large, mid-size, small, and micro suppliers. It is this ecosystem that makes Taiwan competitive and unique in the global market.
This ecosystem is difficult to replicate elsewhere in the world because it is not only cost-effective and efficient, but also competitive and reliable.
Hsiao emphasized that the global demand for chips and technology, including the products that Taiwan can supply, is growing significantly. When new market demand emerges or customers want to expand or localize production, the government believes that Taiwan's industries will make the appropriate adjustments to meet customer demand and expand globally.
Preventing Taiwan tech from being used against Taiwan
Hsiao also addressed Nvidia restarting exports of Taiwan-made H20 AI chips to China and whether it will contribute to China's AI development and be used to threaten Taiwan. Hsiao said that while she could not speak on behalf of any foreign governments or companies, or even Taiwanese companies, from a macro perspective, Nvidia has always been an important partner of Taiwan.
Taiwan's technology ecosystem has long been a reliable supplier to top US companies, including leading tech companies like Nvidia. This is precisely what Taiwan hopes to continue contributing to the world through various trade and investment arrangements.
According to Hsiao, on the topic of AI and technology export controls, the ultimate goal is to ensure that technology developed and produced in Taiwan will not be used to jeopardize Taiwan's security. The resilience and strength of Taiwan's industry ecosystem remain unique advantages, and the Taiwanese government is committed to ensuring that policy, regulatory environment, talent development, and skills training all meet future industry needs.
Article edited by Jack Wu
