TAIPEI (TVBS News) — A sweeping new tariff policy implemented by U.S. President Trump has triggered waves of anxiety throughout Taiwan's export-dependent business community. Despite the widespread concern, Economic Minister J.W. Kuo (郭智輝) offered reassurance on Wednesday (April 9), asserting that Taiwan's crucial server and auto parts manufacturing sectors would likely weather the storm with relatively limited damage.
Kuo explained that approximately 80% of Taiwan's server production operates under original equipment manufacturer (OEM) arrangements, creating a scenario where American clients could potentially absorb a portion of the tariff burden. During his testimony before the Legislative Yuan's Economic Committee (Taiwan's parliamentary economic oversight body), the minister highlighted Taiwan's significant economic entanglement with the United States. He noted that Taiwan's exports to the U.S. reached US$111.4 billion (NT$3.68 trillion) last year, representing 23% of the island's total exports, with information and communication technology products and electronic components constituting 65.4% of these shipments.
Concerns intensified during the committee session when Kuomintang (KMT, 國民黨), Taiwan's main opposition party, Legislator Cheng Cheng-chien (鄭正鈐) pressed the minister about the tariff's potential impact on the island's vital server manufacturing industry. Kuo candidly acknowledged the substantial challenge posed by the proposed 32% tariff but maintained that server companies possessed greater flexibility to absorb and manage such impacts compared to other sectors. The minister revealed that a specialized negotiation team would be deployed to both assess Taiwanese manufacturers' resilience and engage directly with U.S. officials to seek more favorable terms.
Kuo further outlined the precise timeline of the tariff implementation, explaining that Taiwanese exports departing before April 5 and arriving in the United States by May 27 would completely avoid the new duties. Products shipped during the narrow window between April 5 and April 9 would face a reduced 10% tariff, while anything exported after April 9 could be subject to the full 32% duty. Despite the looming challenge of these reciprocal tariffs on Taiwan's exports to its second-largest trading partner, the minister struck a cautiously optimistic tone regarding ongoing bilateral negotiations, expressing hope that Taiwan might secure more favorable treatment in future agreements.
