Taiwan business groups discuss impact of US tariffs

台灣商業團體討論美國關稅的影響

Business groups respond to tariffs by pursuing other markets and greater resiliency


TAIPEI (Taiwan News) — Taiwan businesses are bracing for US President Donald Trump’s 32% reciprocal tariff on Taiwanese goods, with many expressing concern that the Cabinet’s NT$88 billion (US$2.66 billion) subsidy package will not be enough to protect the agricultural and industrial sectors.

Business groups are calling on the government to take a stronger stance, including the possibility of raising tariffs on US goods to gain leverage in negotiations. They also encouraged closer collaboration with key industries to pursue more bilateral trade agreements, per PTS.

Lin Bo-feng (林伯豐), chairman of the Third Wednesday Club (三三會), a trade association of entrepreneurs, said, "We need to negotiate with the US not only about tariffs, but also about BTAs and investment agreements. The worst-case scenario is that we will not sell to the US."

Hsu Shu-po (許舒博), chairman of the General Chamber of Commerce of Taiwan, said, "It is unfair to our exports, and our competitiveness will be reduced. Instead of subsidies or fear of unemployment, negotiating with the US to reduce this 32% tariff is the key point."

Trump has also threatened to expand the tariffs to include semiconductors and pharmaceuticals. The Federation of Taiwan Pharmacists Associations (FTPA) said such tariffs would have limited direct impact, as 75% of Taiwan’s pharmaceuticals are imported, and exports to the US remain small.

However, the greater concern is that major pharmaceutical firms in Europe and the US may reduce local production due to increased costs. Coupled with cuts to drug prices by Taiwan’s National Health Insurance Administration, this could lead to reduced profit margins and a heightened risk of drug shortages.

FTPA Chairman Huang Chin-shun (黃金舜) said, "When pharmaceutical companies reduce production, their supply chains will look for countries with high profits to sell to first. Taiwan will be the first to be eliminated because of its small market and low profits."

The FTPA suggested the government use this opportunity to promote domestic generic drugs and strengthen local pharmaceutical production. It also warned that current investment incentives are insufficient to revitalize the industry.

Huang added that, to encourage Taiwanese manufacturers to return, the government must offer optimal conditions and export support to markets outside the US. The group urged the administration to hold industry symposiums and collaborate more closely with the private sector to respond effectively to the challenges posed by US tariffs.