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 market sold off this morning after President Donald Trump announced sweeping tariffs over the weekend to take effect Tuesday. The broader benchmark S&P 500 fell over 1.7%, as of 9:55 a.m. ET. Meanwhile,

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

Donald Trump has fired the first shots in what threatens to become a devastating trade war. The US president’s tariffs on Mexico, Canada and China will deliver an immediate shock to the North American and world economies. They imperil decades of progress towards economic integration that has boosted US and global prosperity.

The island computer chip and electronics components hub is vulnerable to new import duties, so its economy ministry will advise on possible U.S. states for investment, local laws and help finding partners.

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