Taiwan tech industries face 32% U.S. tariff threat

Reporter TVBS News Staff
Release time：2025/04/11 23:59

TAIPEI (TVBS News) — U.S. President Donald Trump announced on Thursday (April 11) a 90-day suspension of reciprocal tariffs on Taiwan, offering temporary relief for affected industries to expedite trade. Despite this reprieve, Taiwanese information and communication technology sectors remain anxious about a potential 32% tariff on their products, which represent over 46% of exports to the U.S., valued at US$51.494 billion.

Chou Yu-ping (周宇平), a senior consultant at a private cybersecurity equipment company, emphasizes Taiwan's dependence on global markets for crucial materials despite its self-sufficient chip design capabilities. He notes that field-programmable gate array (FGPA) chips could be purchased from the U.S. but might be initially manufactured in Taiwan, creating a situation where completed products containing FPGA components would face compounded tariffs when re-exported to America.

Deniss Weng (翁履中), an associate professor of political science at Texas State University, advises Taiwan to leverage its connections with key congressional members and overseas Taiwanese communities. These relationships could help influence U.S. government core teams and strengthen Taiwan's negotiating position by demonstrating diverse partnership possibilities with other countries, regardless of U.S. preferences, according to Weng.

Scholars have identified machinery, biotech pharmaceuticals, and medical technology as "hidden champion" industries in Taiwan with potential for growth. Against this backdrop, Yeh Yao-yuan (葉耀元), a professor of international studies at the University of St. Thomas, suggests that investing directly in the U.S. might be Taiwan's only viable option to avoid tariff sanctions, though market diversification could also prove beneficial.

Taiwan's trade surplus with the U.S. reached US$73.9 billion last year. Yeh cautioned that government subsidies — currently proposed at NT$88 billion — might provide only short-term relief without addressing fundamental issues. The current tariff situation is forcing countries worldwide to reassess their relationships with the United States, and Taiwan must carefully balance sovereignty concerns with national economic interests as it navigates these challenges.

The Taiwan Briefing