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Taiwan defended its semiconductor trade with the United States on Tuesday, calling it a “win-win” partnership despite tariff threats from former U.S. President Donald Trump.

Trump announced plans on Monday to impose tariffs on imported chips, pharmaceuticals, and steel, aiming to push manufacturers to relocate production to the U.S. However, Taiwan’s economy ministry emphasized the deep interdependence between both nations’ tech industries.

“Taiwan and the U.S. semiconductor and other technology industries are highly complementary, especially the U.S.-designed, Taiwan-foundry model, which creates a win-win business model,” the ministry said in a statement. It pledged continued cooperation to safeguard mutual economic interests amid global uncertainties.

Taiwan’s presidential office echoed the sentiment, reaffirming “good mutual trust and a close relationship” with the U.S. in semiconductor and high-tech industries.

Taiwan is home to Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, which plays a crucial role in the supply chains of Apple and Nvidia . In 2020, during Trump’s first term, TSMC announced a $12 billion Arizona plant, later expanding its U.S. investment to $65 billion. The company declined to comment on Trump’s latest tariff remarks.

Despite concerns over trade restrictions, Taiwan Economy Minister Kuo Jyh-huei said earlier this month that any tariffs would have a limited impact due to Taiwan’s technological edge. However, Trump has also launched an investigation into U.S. trade deficits and alleged currency manipulation, which could pose further economic challenges for Taiwan.

Taiwan’s trade surplus with the U.S. surged 83% in 2024, with exports reaching a record $111.4 billion, largely driven by demand for semiconductors.

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