TAIPEI: Taiwan has drawn up plans to help local industries hit by possible US tariffs, the island's economic minister said Tuesday, as Donald Trump's prepares to unveil sweeping levies against all trade partners.
The US president is expected to announce “reciprocal tariffs“ on Wednesday, which he has dubbed “Liberation Day”, saying Washington was fighting back after years of being “ripped off”.
Since returning to office in January, Trump has threatened duties to fix what he says are trade imbalances and push companies to shift manufacturing operations to America.
Taiwan's trade surplus with the United States is the seventh highest of any country, reaching US$73.9 billion in 2024.
“Our countermeasures have been assessed and analysed, for example, how we would respond to a 10 percent or how we would respond to a 25 percent tariff,“ Minister of Economic Affairs Kuo Jyh-huei told reporters.
“All scenarios have been analysed and evaluated to identify suitable responses and determine how best to assist domestic industries in managing the impact,“ he said without elaborating.
Kuo added that a plan would be announced on Thursday after Trump revealed who would be targeted by the tariffs.
Taiwan -- a powerhouse in semiconductor chip manufacturing -- has pledged to increase investment in the United States in a bid to head off tariffs.
Trump has accused the island of stealing the US chip industry and recently threatened to impose tariffs of up to 100 percent on semiconductor imports from there.
Taiwan hopes chipmaking titan TSMC's recently announced plan to invest US$100 billion in the United States will help it avoid penalties on the sector, which is a major driver of the island's economy.
