Trump has threatened tariffs of up to 100% or even 200% on Taiwanese chips exported to the United States, but Taiwanese officials stumbled in their initial response — bad news for both the semiconductor industry and the government's image.

• At a Republican midterm election rally in Dallas, Trump criticised his predecessor for handing the chip industry over to Taiwan and called for heavy tariffs on Taiwanese chips.
• Asked about the matter, Chang Chen-hao, deputy minister of the National Science and Technology Council and only 10 days into the job, blurted out that Trump often says things and "we just listen," then backtracked, saying he had spoken too hastily.
• Executive Yuan spokesperson Lee Hui-chih handed him a mobile phone on the spot so he could read from a script stating that Taiwan has always valued Taiwan-US relations.
• The Executive Yuan stressed that a memorandum on investment was signed with the US side in January this year, that Section 232 tariff concessions for non-semiconductor goods have already taken effect, and that the semiconductor portion is also written into the memorandum.
• Taiwan will continue to press for duty-free quotas and exemption lists for businesses through official government-to-government channels with the United States.

Outlook: The chip tariffs have yet to be finalised, and the outcome of the coming Taiwan-US negotiations will directly determine the cost of Taiwan's semiconductor exports.