Trump's trade policy could undermine relations with Asian partners.

Trump plans to impose tariffs on computer chips, pharmaceuticals, and steel

The President of the United States, Donald Trump, plans to impose tariffs on imported computer chips, pharmaceuticals, and steel to force companies to increase production in the USA. These steps could lead to tensions with Taiwan, South Korea, and Japan, the USA's allies in Eurasia.

According to the Asian Development Bank, Asia is the world's largest center for microchip manufacturing, accounting for over 80% of the semiconductors sold globally (as reported by the financial newspaper citing Reuters).

Taiwan Semiconductor Manufacturing Co., the largest contract manufacturer of microchips in the world, produces semiconductors for Nvidia, Apple, and other American customers. In 2024, TSMC derived 70% of its revenue from customers in North America.

Despite TSMC building a $65 billion production plant in Arizona, the majority of its production remains in Taiwan, and exports to the USA could be affected by tariffs.

Asian manufacturers also dominate the market for memory chips, particularly DRAM and NAND, used in electronic devices, including computers. The South Korean company Samsung Electronics and SK Hynix control over 75% of the global DRAM market.

These two companies, along with the Japanese Kioxia, which is owned by the American company Bain Capital, share a similar market share in NAND flash memory.

Samsung is also investing about $44 billion in chip manufacturing in Texas with the help of US government subsidies.

According to the Ministry of Trade, Industry and Energy of South Korea, semiconductor exports from South Korea reached a record $141.9 billion in 2024, of which $10.28 billion were exported to the USA.

The introduction of tariffs on imported pharmaceuticals could negatively impact Japan, where major pharmaceutical companies such as Takeda, Astellas, Daiichi Sankyo, and Eisai are located. They anticipate a significant increase in sales of their Alzheimer's drug, Leqembi, in the USA.

For Takeda, the American market accounted for just over half of its revenue last year, and for Astellas, it was 41%. In both cases, it is unclear what portion of the revenues was imported.