TAIPEI (TVBS News) — The opposition Kuomintang (KMT, 國民黨) and Taiwan People's Party (TPP, 民眾黨) unveiled a comprehensive report Monday (July 21) examining reciprocal tariffs imposed by U.S. President Donald Trump on Taiwan's key industries. The report highlighted significant repercussions for electronics, computer, optical products, and automotive sectors across the island's manufacturing base. The opposition parties' detailed analysis underscores growing concerns about escalating trade tensions affecting Taiwan's export-dependent economy and industrial competitiveness in global markets.
Former National Taiwan University (NTU, 台灣大學) President Kuan Chung-ming (管中閔) stated that 50.5% of surveyed companies have already felt the tariff impact across multiple sectors. He noted 5% have begun layoffs and 25% have halted expansion plans amid growing economic uncertainty. Kuan emphasized policy uncertainty remains the main concern for businesses as America has not formally announced its comprehensive tariff policy on Taiwan. The survey findings reveal widespread anxiety among Taiwan's manufacturing sector about future trade relationships and economic stability.
The report projected that under a simulated 10% tariff scenario, nearly 60% of firms expect slight revenue declines or no significant change to their business operations. If tariffs rise to 20%, over half anticipate revenue drops of 10% to 30%, with 26% fearing losses exceeding 30% of current income. The escalating impact demonstrates how higher tariff rates could severely damage Taiwan's manufacturing competitiveness and profitability in international markets. These projections highlight the vulnerability of Taiwan's export-oriented economy to trade policy changes.
Kuan recommended stabilizing exchange rates, reviewing energy policies, expanding employment measures, establishing an AI transformation unit, and creating a single trade assistance window to help businesses navigate tariff impacts. The comprehensive survey conducted from June 13 to July 15 covered 238 manufacturing firms nationwide across various industrial sectors. Results showed 88.5% of these companies are small and medium-sized enterprises with fewer than 200 employees, highlighting the vulnerability of Taiwan's smaller manufacturers to trade disruptions. ◼
