Taiwan Prepares Countermeasures as US Plans New Trade Tariffs

Taiwan’s Minister of Economic Affairs, Kuo Jyh-huei, has announced plans to support local industries that may be impacted by upcoming US tariffs, as President Donald Trump moves to impose widespread trade levies.

Trump is set to unveil “reciprocal tariffs” on Wednesday, calling it “Liberation Day,” in what he claims is a response to years of unfair trade practices against the US. Since returning to office in January, he has threatened tariffs to reduce trade imbalances and encourage companies to shift manufacturing operations back to the US.

Taiwan, which holds the seventh-largest trade surplus with the US at $73.9 billion in 2024, is closely monitoring the situation.

“Our countermeasures have been assessed and analyzed, including responses to potential 10% or 25% tariffs,” Kuo said.
“All scenarios have been evaluated to ensure the best possible support for domestic industries.”

Kuo added that Taiwan will unveil its official response on Thursday after Trump clarifies which industries will be affected.

As a global semiconductor powerhouse, Taiwan has sought to mitigate potential tariffs by increasing its investment in the US. Trump has accused Taiwan of undermining the US chip industry and has even threatened tariffs of up to 100% on semiconductor imports.

Taiwan is hopeful that TSMC’s recently announced $100 billion US investment will help shield its semiconductor sector—a critical pillar of Taiwan’s economy—from these trade restrictions.