So here's what happens when the Supreme Court throws a wrench into international trade policy: everyone starts scrambling. Taiwan is now racing to preserve some recently negotiated trade benefits with the United States after the court delivered a blow to President Donald Trump's emergency tariff powers, injecting a fresh dose of uncertainty into U.S.-Taiwan relations.

Vice Premier Cheng Li-chiun said the government is in close contact with U.S. officials to make sure those hard-won preferential terms don't disappear. Her comments came after Trump warned that countries shouldn't retreat from newly negotiated agreements, adding that he could impose significantly higher duties under alternative trade laws, according to reports.

Here's what Taiwan stands to lose: they secured two agreements that reduced tariffs on their exports to the U.S. from 20% down to 15%. The first deal, reached last month, came with some big promises from Taiwan. Companies committed to invest $250 billion in the U.S. to expand semiconductor, energy, and artificial intelligence production. They also guaranteed an additional $250 billion in credit to support further investment. A second agreement finalized this month reaffirmed the 15% rate and laid out a timetable to eliminate or reduce tariffs on nearly all U.S. goods, alongside increased purchases of American products like natural gas.

Now, with the court's 6-3 ruling that Trump's import tariffs violated the 1977 International Emergency Economic Powers Act, the whole arrangement feels a bit less stable.

Trump Takes Aim at Taiwan's Chip Crown

And of course, the semiconductor tensions flared right back up. Trump responded to the court ruling by criticizing Taiwan's chip sector in pretty direct terms. "Taiwan came [into the chip sector and] they stole our chip business," he said, arguing that it displaced American leaders like Intel Corp. (INTC).

His remarks zeroed in on Taiwan's dominant semiconductor industry, led by Taiwan Semiconductor Manufacturing Company Ltd. (TSM). TSMC is the world's largest contract chipmaker and a critical supplier of advanced AI chips to major U.S. tech firms. So when the former president talks about "stealing" the chip business, he's talking about the company that makes the chips inside a lot of American products.

The Export Surge That Could Be a Problem

Cheng, who led the negotiations, tried to project calm. She said Taiwan isn't reopening talks but will stay engaged to protect the existing terms, even if Washington adopts new tariff measures through other legal channels. She argued that countries with signed agreements should be in a stronger position if new trade tools are used and said semiconductor tariff treatment will remain unchanged.

But she also acknowledged a potential vulnerability: Taiwan's large U.S. trade surplus. Recent data shows Taiwan's exports to the U.S. actually surpassed China's in December. Semiconductor shipments alone reached nearly $24.7 billion, exceeding mainland China's $21.1 billion in exports to the U.S. that month. That's a lot of chips, and a big surplus tends to attract attention in trade disputes.

Adding another layer to this, the White House said Trump will travel to China from March 31 to April 2 for talks with Xi Jinping. So the geopolitical chessboard around chips and trade is getting more complicated by the day.

As for the market reaction? Taiwan Semiconductor shares were up 1.64% at $376.11 during premarket trading on Tuesday. The stock is trading near its 52-week high of $380.00.