Taiwan saw an impressive surge in exports during the first months of 2025, driven by increased capital expenditures from US cloud service providers and clients advancing order pull-ins in anticipation of reciprocal tariffs. Going forward, however, semiconductor exports in 2026 and 2027 might be impacted as the US government launches a national security investigation on semiconductors and downstream products under Section 232 of the Trade Expansion Act. A top Executive Yuan official has now noted that US companies would ultimately suffer the most from any tariffs imposed on semiconductors.