Taiwan’s government will soon look at whether it needs to help its domestic industry over threats by President Donald Trump to put tariffs on semiconductors, Premier Cho Jung-tai said on Wednesday.

The tariffs would ensnare cutting-edge smartphone and PC-related chips for Apple, AMD and Nvidia if enacted. But Trump is betting his plan will bring more chip production to the US.

The Trump tariffs could financially hit Apple's chip production partnership with TSMC, after the President insisted the import taxes will be applied to semiconductors and other specific industries in the near future.

How big a financial hit would Apple and its Taiwanese chip making partner TSMC take if and when U.S. President Donald Trump's proposed tariffs take effect?

President Donald Trump has threatened to impose tariffs on Taiwan-made chips, which could hit Nvidia, one of TSMC's biggest customers.

While the tariffs aim to boost domestic manufacturing, they are unlikely to divert production from Asia immediately.

In TSMC’s case, this is in the form of a $12 billion semiconductor factor in Arizona, supporting by a $6.6 billion CHIPS Act subsidy won last year. Since then, the semiconductor giant has pledged to build two more facilities in Arizona, bringing the company’s total planned investment to around $65 billion.

Taiwan's government has been swift to respond to the talk of huge tariffs by the recently inaugurated 47th president of the United States.

Some are suggesting that this would affect the price of everything Apple makes, as its chips are made in Taiwan, but that’s almost certainly not the case … The Register reports that Trump threatened to set the rate as high as 100%.