TAIPEI (Taiwan News) — Taiwan’s Cabinet addressed the media on Wednesday, one day before new US tariffs were set to take effect, pledging continued negotiations and support measures for industries impacted by the trade actions.
Senior Cabinet official Kung Ming-hsin (龔明鑫) and Deputy Chief Representative of the Taiwan Trade Negotiation Office Yen Huai-shing (顏慧欣) said the tariffs are pushing more countries to ramp up investment in the United States, UDN reported.
Yen said she is working to leverage increased Taiwanese investment in the US and noted that it is too early to determine the outcome of the ongoing Section 232 investigation under the US Trade Expansion Act, which is assessing the national security implications of imported information and communication products.
Taiwan’s top trade negotiator has faced criticism from opposition lawmakers, who claim neighboring countries such as Japan and South Korea face 15% tariffs, while Taiwan's provisional rate is 20%.
Kung responded that the tariff was initially set at 32% and was reduced to 20% through negotiations, softening the impact on Taiwan’s industries. He acknowledged that certain sectors — including machine tools, plastics, and agricultural products such as orchids and fish — would be more vulnerable to competition under the new trade regime.
He emphasized that the government would actively support affected sectors. For example, Taiwan holds a 46% share of the US orchid market, where its main competitor, the Netherlands, faces only a 15% tariff.
Taiwan also exports mahi-mahi to the US, competing with Peru and Ecuador, both of which are subject to lower tariffs than Taiwan.
In response to US President Donald Trump’s recent claim that Taiwan Semiconductor Manufacturing Co. would invest US$300 billion in the US, Kung clarified that the government does not speak on behalf of private companies regarding investment plans. However, he said Taiwan supports global expansion strategies by local firms, in line with its goal of building an "economically viable nation."
An official from the Ministry of Economic Affairs added that 70% of Taiwan’s exports to the US consist of information and communications technology (ICT) products — including graphics cards, PCs, and servers — which are currently under Section 232 review. The official said securing a lower tariff rate would significantly benefit Taiwan’s ICT sector.
