In the month of July, Research Institute for the Democracy, Society, and Emerging Technology (DSET) visited the Japan’s Institute for International Economic Studies (IIES) in Tokyo and held an exchange with Mr. Shingo Ito, Senior Analyst in regional studies. The meeting took place shortly after the United States announced new tariffs on Japanese imports. Accordingly, discussions centered on how Taiwan and Japan are respectively responding to U.S. tariff negotiations.
IIES was established in October 1983 by the Toyota Motor Corporation and focuses on international economic circumstances that are critical to the development of internationalization strategies. Its current research emphasizes the mid-to long-term economic, industrial, social prospects of major emerging countries, political and economic trends and outlook in Europe and United States and other developed countries. Mr. Ito has long led research on trade policy and Taiwan’s economic affairs.
In response to Mr. Ito’s inquiry regarding Taiwan’s tariff negotiations, DSET CEO Jeremy Chang stated that reciprocal tariffs have a limited impact on Taiwan’s semiconductor industry. However, a more significant concern lies in the U.S. Department of Commerce’s ongoing Section 232 investigation into the semiconductor sector and the potential tariffs that may follow. Based on DSET’s research, Taiwanese mature-node semiconductor manufacturers are already facing considerable pressure from China’s unfair trade subsidies and risk being displaced by Chinese competitors. In the current U.S.-China trade climate, if Taiwanese firms are not granted significantly more favorable tariff rates than Chinese companies, Taiwan’s semiconductor sector could suffer serious setbacks.
Chang further noted that in addition to the current Section 232 and reciprocal tariffs, the U.S. government’s ongoing Section 301 investigation into Chinese semiconductor subsidies is equally critical. In preparing for potential shifts in the global supply chain, Taiwan and Japan should jointly advocate for stronger coordination among democratic allies to counter China’s growing dominance in mature-node semiconductor production.