Taiwan is making preparations to assist local industries potentially impacted by new tariffs from the United States, according to the island’s Economic Minister. The announcement comes as US President Donald Trump plans to impose sweeping tariffs on all trade partners.
Trump is set to reveal “reciprocal tariffs” on Wednesday, which he has termed “Liberation Day.” He claims that these tariffs are necessary to correct what he perceives as unfair trade practices that have exploited the US for years.
Since his return to office in January, Trump has threatened tariffs aimed at addressing trade imbalances and encouraging companies to shift their manufacturing operations back to the US.
In 2024, Taiwan’s trade surplus with the United States was the seventh highest in the world, amounting to US$73.9 billion.
Taiwan’s Economic Minister, Kuo Jyh-huei, stated that plans are in place to respond to potential tariffs, with assessments made for various scenarios, such as 10% or 25% tariffs. These plans aim to help mitigate the impact on local industries. Kuo did not provide further details but mentioned that an official plan would be announced on Thursday, following Trump’s tariff announcements.
Taiwan, a major player in semiconductor manufacturing, is especially concerned as Trump has accused the island of undermining the US chip industry. He has even threatened tariffs as high as 100% on semiconductor imports from Taiwan.
Taiwan is hopeful that the recent US$100 billion investment commitment from chipmaking giant TSMC in the US will help avoid these severe tariffs, given the semiconductor sector’s significant role in Taiwan’s economy.
This development is still ongoing, and further details are expected after President Trump’s official announcement.
