Over the past week, tariffs have been in full focus as President Donald Trump continues pushing the U.S. towards another global trade war.
He recently made the controversial decision to move forward with a 25% tariff on almost all imports from Canada and Mexico, a move that many economic experts advised against. On top of that, he has opted to double the tariff on Chinese imports from 10% to 20% and all three nations are poised to retaliate.
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While Trump has announced a temporary pause on automotive imports, rising uncertainty continues to cast dark shadows over financial markets, raising questions regarding the future not just of the U.S. but the entire global economy.
Trump’s decisions have drawn significant ire as stocks experience high volatility and consumers prepare for high prices. But he may be considering one that could significantly impact a company planning a massive U.S. investment.
U.S. President Donald Trump may be considering a new tariff decision that could have severe consequences.Â
The next tariff casualty could have severe repercussions
It’s clear that many companies will be significantly impacted as the tariffs move forward, both those from the U.S. and against it. Higher prices for consumers will lead to less spending but U.S. consumers aren’t the only ones who will feel these negative effects.
As TheStreet recently reported, tech companies with high exposure to China will likely be severely undermined, as domestic companies are able to undermine their prices. But Trump isn’t done yet: according to reports, he may be considering another tariff on a company that is expanding into the U.S.
Related: China responds to tariffs with shocking move
Taiwan Semiconductor Manufacturing Company (TSM)  has been one of the biggest beneficiaries of the global artificial intelligence (AI) boom. The leading chipmaker has been focused on furthering its reach lately, and last week, it announced plans to invest $100 billion in developing new fabrication plants on U.S. soil.
In many ways, this is a highly positive development for the U.S. as it looks to continue increasing its share of the booming AI market and uphold its dominance in the lucrative field of semiconductor production. However, a recent report indicates that Trump may still be planning to levy tariffs against Taiwan.
In January 2025, Trump announced that the U.S. would be imposing tariffs on foreign-made semiconductors in the “very near future.” According to a source who spoke to WIRED about Trump’s plans, that day may be quickly approaching.
“One version of the plan,” the person says, “would involve placing import duties not just on Taiwanese chips themselves but also on electronic devices that contain them, such as Apple iPhones.”
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Trump initially warned that these tariffs, aimed at chips made in Taiwan, could be as high as 100%. While he has not personally made any statements recently regarding levying tariffs against Taiwan, his administration is reportedly still deliberating over it, even in the face of TSMC’s investment news.
What a new Taiwan tariff would mean for U.S. companies
The fact that Trump’s team is still considering new Taiwanese tariffs indicates that he remains hyper-focused on bringing chip production to the U.S. He has previously criticized the Biden administration’s CHIPS and Science Act, highlighting tariffs as the only effective way to incentivize foreign chipmakers to shift operations to U.S. soil.
Related: Experts are watching these tech stocks are tariff nightmare looms
However, there are certain complications that could ensue from taxing Taiwanese companies so highly, particularly given that many prominent U.S. companies are heavily dependent on TSMC, including Apple (AAPL) , Nvidia (NVDA)  and Advanced Micro Devices (AMD) .
“It takes years to build a chip factory, meaning any tariffs on Taiwanese-manufactured chips risk causing price hikes for numerous computer products, such as Nvidia graphics cards, Apple iPhones and AMD processors, which all come from TSMC factories,” reports PCMag.
Conventional logic would suggest that Trump should take the win from TSMC making a sizable investment in scaling its U.S. operations. Given his unpredictable nature, though, he may well still be considering further tariffs, as the WIRED report indicates.
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