TAIPEI (Taiwan News) — National Development Council Minister Liu Chin-ching (劉鏡清) said Friday that Taiwanese companies may move manufacturing back from Southeast Asia following new US tariffs.

This follows US President Donald Trump's announcement of a 32% tariff on Taiwanese imports. Southeast Asian countries were hit hardest, with Vietnam facing a 46% tariff, Thailand at 37%, and six of the 10 countries listed facing tariffs between 32% and 49%, per CNA and Reuters.

Many Taiwanese firms in Southeast Asia now face higher tariffs than if they operated in Taiwan. Some are responding by expanding local factories or importing semi-finished goods for domestic assembly.

Liu also outlined mid- and long-term strategies to expand investment, boost high-salary jobs, stimulate consumption, and revitalize exports. In response to the tariffs, Premier Cho Jung-tai (卓榮泰) unveiled an NT$88 billion (US$2.66 billion) assistance package, covering nine areas and 20 measures aimed at risk management and industry support.

While some companies are reshoring, others are expanding abroad. The government will assist these businesses with supply chain restructuring and market diversification, particularly as Taiwan increases its role in non-China semiconductor and AI supply chains.

Additional support will target research and development and transformation for companies with mature product lines, helping them develop high-value offerings.

Liu also noted ongoing efforts to improve Taiwan’s investment environment, including better access to land and talent, alongside initiatives to foster domestic innovation. A full policy announcement is expected soon.