Taipei, Aug. 7 -- U.S. President Donald Trump announced on Wednesday that the United States will impose a 100 per cent tariff on imported semiconductor chips. Focus Taiwan reported that the announcement, delivered from the Oval Office, came just hours before the country-specific tariffs were scheduled to take effect.

"We'll be putting a tariff of approximately 100 per cent on chips and semiconductors," Trump said. "But if you're building in the United States of America, there's no charge."

A tariff of this magnitude could sharply raise costs for American companies reliant on Taiwanese chips and force difficult decisions for Taiwanese manufacturers trying to stay competitive in the U.S. market.

Taiwan, home to the world's largest contra...