Trump: "TSMC Faces 100% Tariffs If No US Factory Built"

U.S. President Donald Trump threatened that TSMC, which promised to build a new factory in the United States, would have to pay tariffs of up to 100% if it fails to fulfill its promise.

On the 8th (local time), at the Republican National Congressional Committee (NRCC) dinner event held in Washington DC, President Trump criticized the previous Joe Biden administration for providing TSMC with a $6.6 billion subsidy under the CHIPS Act and made these remarks.

President Trump is speaking at the National Republican Congressional Committee (NRCC) dinner event held in Washington DC on the 8th (local time). Photo by Reuters Yonhap News

President Trump said, "I did not give money to TSMC," adding, "All I said was that if they don't build a factory here, they will have to pay a big tax." Last month, TSMC CEO Wei Zhejia announced plans to invest $100 billion in the United States during a joint press conference after meeting with President Trump.

On that day, President Trump stated that the U.S. earns $2 billion a day from tariffs, saying, "Many countries have exploited us tremendously, but now it's our turn to do the ripping."

Regarding the 104% tariff imposed on China, he said, "Other countries pay tariffs, and now China is paying 104%," adding, "When you think about 104%, you might think it's ridiculous, but they imposed 100% or 125% tariffs on many American products." President Trump signed an executive order that afternoon to raise reciprocal tariffs on China from the existing 34% to 84%.

President Trump said, "Worse than tariffs are non-tariff barriers," and added, "China announced today that it is devaluing its currency. They are manipulating the exchange rate to offset U.S. tariffs on China." He continued, "That is why the 104% tariff on Chinese products, effective tonight (June 9 at 12:01 a.m.), remains valid until they negotiate." However, he left room for dialogue by saying, "I think at some point they will negotiate."

President Trump also said that many countries would do anything to sign new trade agreements with the United States.

Regarding automobile imports, mentioning South Korea and Japan, he claimed, "The U.S. Navy has patrolled the world for 70 years, the U.S. military has maintained peace, and the United States has made the world prosperous. Despite all that we have given everyone, you cannot find American cars in Berlin, Tokyo, Seoul, or Shanghai."