Taiwan's Industry Support Amid U.S. Tariff Threats

Taiwan's Ministry of Economic Affairs (MOEA) has been proactive in addressing potential U.S. tariff threats, implementing various measures to support its industries and mitigate the impact of any trade disruptions. The MOEA's strategy focuses on diversifying investment strategies, strengthening global supply chains, and fostering closer ties with key markets.



One of the primary initiatives is the "Three Major Programs for Investing in Taiwan," which encourages businesses to relocate high-end production capacity back to Taiwan. This program, extended to 2027, targets five trusted industries, the service sector, and the healthcare industry, with a mandatory requirement for AI applications to enhance supply chain resilience. The program has been revised to expand coverage to overseas Taiwanese enterprises and foreign-invested companies, demonstrating Taiwan's commitment to supporting its industries in the face of global challenges.

Another key measure is the "Taiwan Desk" and the "New Southbound Policy," which provide investment services and support to Taiwanese enterprises in eight New Southbound Policy countries, as well as in Japan and the Czech Republic. This policy helps Taiwanese businesses explore new markets and reduce their reliance on the U.S. market, thereby mitigating the impact of potential tariffs.

The MOEA also maintains economic divisions stationed in major countries and Taiwan Trade Centers to offer further assistance to Taiwanese businesses. These resources help Taiwanese companies navigate international markets and diversify their export destinations, reducing the impact of U.S. tariffs.

In addition to these measures, the MOEA continues to collaborate with the American Institute in Taiwan (AIT) to invite domestic industry associations and enterprises to participate in the 2025 SelectUSA Investment Summit. This event strengthens Taiwanese businesses' presence in the U.S. market, fostering a win-win situation for both countries.

Taiwan's response to U.S. tariff threats, emphasizing the "win-win business model" and close cooperation between the two sides, could significantly influence the global semiconductor supply chain and the broader technology industry. By encouraging further investment in the U.S., promoting technological collaboration, reducing dependence on a single region, and inspiring other countries to invest in semiconductor production, Taiwan's strategy could lead to a more balanced and resilient global supply chain.

However, the risk of retaliation and trade wars also exists, which could disrupt the global supply chain and harm both economies. Taiwan's response, however, suggests a willingness to avoid such a scenario, emphasizing the importance of close cooperation and mutual benefit.

In conclusion, Taiwan's proactive approach to supporting its industries in the face of U.S. tariff threats demonstrates its commitment to fostering a resilient and diversified global supply chain. By implementing various measures to encourage investment diversification, strengthen global ties, and promote technological collaboration, Taiwan is well-positioned to navigate the challenges posed by potential tariffs and maintain its competitiveness in the global market.