Trump Rips Into Taiwan After Supreme Court Tariff Blow

Trade tensions between Washington and Taipei flared anew after the U.S. Supreme Court struck down President Donald Trump's emergency tariff authority, prompting him to double down on criticism of Taiwan's semiconductor dominance and swiftly roll out new tariffs.

Trump Targets Taiwan After Supreme Court Tariff Ruling

U.S. President Donald Trump renewed his criticism of Taiwan's chip industry after the U.S. Supreme Court ruled 6-3 that his import tariffs violated the 1977 International Emergency Economic Powers Act, invalidating many of the tariffs he imposed under a national-emergency law.

At a Saturday press conference, Trump said, "Taiwan came [into the chip sector and] they stole our chip business," and argued Taiwan had pushed aside former U.S. chip leaders, including Intel Corp (NASDAQ:INTC).

His comments come as Taiwan is home to Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM), the world's largest contract semiconductor manufacturer and the dominant producer of advanced AI chips used by major U.S. technology firms.

He also said Taiwanese companies built factories in Arizona, Texas, and other U.S. states to avoid tariffs, SCMP reported on Sunday.

After the ruling, Trump imposed a 10% temporary tariff on imports and said his administration would "determine and issue the new and legally permissible tariffs" in the coming months.

A day later, he raised the tariff rate to 15%.

Earlier this year, Taiwan committed to invest $500 billion in exchange for lower tariffs of 15% from 20%, a pledge that now sits against the backdrop of shifting legal limits and a recalibrated tariff path.

Taiwan Flags Risks as U.S. Trade Data Shifts

The ruling and Trump's comments triggered concern in Taiwan, where political and economic voices warned that the outcome could reshape Taiwan's negotiating room with Washington.

Taichung politician Zhou Yonghong said the decision could please China while hurting Taiwan after the island worked to secure a tariff arrangement with the U.S.

TS Financial Holdings chief economist Li Zhengyu said the ruling could have direct implications for Taiwan at a moment when U.S.-bound shipments continue rising alongside the global artificial intelligence boom.

A Nikkei Asia report cited U.S. trade data showing that Taiwan's exports to the U.S. surpassed China's in December, as tariffs and AI-driven demand altered global trade flows.

U.S. Bureau of Economic Analysis data released Thursday showed Taiwan's semiconductor shipments to the U.S. in December reached nearly $24.7 billion, above mainland China's $21.1 billion, underscoring how strongly chips and related AI hardware now shape bilateral trade.

Zhengyu also warned that the U.S. push to "institute economic security" could produce lasting changes.

He said that the framework could increase scrutiny and restrictions across sensitive areas such as semiconductors, AI hardware, labor conditions, and pricing, potentially tightening compliance requirements and raising uncertainty for companies operating across the supply chain.

Against this backdrop, the White House said Trump will travel to China from March 31 to April 2 for talks with Xi Jinping, adding another layer of geopolitical focus to the chip-and-trade equation.

TSM Price Action: Taiwan Semiconductor shares were down 1.23% at $365.99 during premarket trading on Monday. The stock is approaching its 52-week high of $380.00.

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