TAIPEI (TVBS News) — U.S. President Donald Trump has delivered a mixed economic message that leaves Taiwan in the crosshairs of his trade policy. While temporarily suspending tariffs on approximately 75 countries for 90 days on Thursday (April 10), Taiwan Time, Trump pointedly excluded China from the reprieve, one of the nation's main export markets. His April 2 decision to slap a steep 32% tariff on Taiwan has sent shockwaves through the island nation's export-dependent economy, triggering panic across manufacturing, technology, and food sectors that rely heavily on American consumers.
The food sector stands among numerous business segments struggling to adapt to these new economic pressures. Chen Kun-tse (陳昆澤), marketing manager at Shangdao Foods (上統食品), revealed that the American market represents half of the company's 70% export volume. To mitigate growing risks, the company is exploring options to establish warehouses in either the United States or Mexico.
The textile industry reports conditions worse than those experienced during the pandemic. American clients have begun demanding price reductions, while manufacturers anticipate significant sales declines during this year's second and third quarters. Hsu Hsiu-kuo (徐修國), general manager of Hsiang Lun Industrial Corporation (祥綸企業), forecasted a substantial decrease in procurement volumes extending through 2026. With consumer purchasing power weakening, manufacturers are adjusting their sales projections downward accordingly.
Against a backdrop of increasing global economic uncertainty, Taiwan's government intends to utilize the 90-day tariff suspension window strategically. Officials plan to engage in comprehensive discussions with the United States regarding bilateral economic and trade cooperation. The government aims to leverage American market access, technology, capital, and talent to establish a Taiwan-U.S. alliance. This partnership would potentially secure Taiwan a crucial position in the restructured global supply chain. Industry leaders have expressed cautious optimism about potential positive outcomes from these upcoming negotiations.
