Taiwan has developed comprehensive contingency plans to shield its domestic industries from potential US tariffs, according to the island’s economic minister, as President Donald Trump prepares to announce widespread duties against global trading partners tomorrow.
Economic Affairs Minister Kuo Jyh-huei revealed during a press briefing yesterday that Taiwan has conducted thorough assessments of various tariff scenarios. “Our countermeasures have been assessed and analysed, for example, how we would respond to a 10 percent or how we would respond to a 25 percent tariff,” Kuo stated.
“All scenarios have been analysed and evaluated to identify suitable responses and determine how best to assist domestic industries in managing the impact,” he added, though he declined to provide specific details about the planned measures. The minister indicated that Taiwan would announce its official response on Thursday, after Trump clarifies which countries and industries will be affected by the new tariffs.
President Trump is expected to unveil what he describes as “reciprocal tariffs” on Wednesday—an event he has dramatically termed “Liberation Day”—claiming the United States is fighting back after years of being “exploited” in international trade relationships.
Since beginning his second term in January, Trump has consistently threatened to impose duties as part of his strategy to address trade imbalances and encourage companies to relocate manufacturing operations to American soil.
Taiwan currently maintains the seventh-highest trade surplus with the United States among all nations, reaching $73.9 billion in 2024, making it particularly vulnerable to Trump’s trade policies.
The semiconductor industry, a cornerstone of Taiwan’s economy, faces particular scrutiny. Trump has specifically accused the island of “stealing” the US chip industry and has threatened to impose tariffs as high as 100 percent on semiconductor imports from Taiwan.
In an apparent effort to mitigate these threats, Taiwan has emphasized its commitment to increasing investments in the United States. Taiwanese officials hope that chipmaking giant TSMC’s recent announcement of a $100 billion investment plan in the United States will help the island avoid penalties on its crucial semiconductor sector.
The growing trade tensions come at a delicate time for Taiwan, which relies heavily on its semiconductor manufacturing capabilities to drive economic growth. Any significant disruption to this sector could have far-reaching implications for both Taiwan’s economy and global supply chains.
Economic analysts predict that Trump’s tariff announcement tomorrow will trigger responses from numerous trading partners worldwide, potentially escalating into broader trade conflicts that could further complicate the already challenging global economic environment.
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