Taipei – A new report released today reveals that a significant portion of Taiwanese businesses are already experiencing the tangible effects of US tariff policies. The report, compiled by a Civilian Impact Assessment Group comprised of think tanks from both the Kuomintang (KMT) and Taiwan People’s Party (TPP), highlights the growing concerns within the island’s business community.
The study, unveiled in Taipei, indicates that over 50% of surveyed companies reported being substantially impacted by what they termed the US’s reciprocal tariff storm. The ripple effects extend beyond immediate financial concerns, with 25% of businesses freezing hiring plans and 23% actively considering or already initiating the relocation of production capacity.
These findings underscore the vulnerability of Taiwan’s economy to fluctuations in US trade policy. As a heavily export-oriented economy, Taiwan relies significantly on access to the US market. The imposition of tariffs, even if framed as reciprocal, can disrupt established supply chains, increase costs, and ultimately erode the competitiveness of Taiwanese businesses.
The decision by a quarter of companies to halt hiring is particularly concerning, suggesting a potential slowdown in job creation and a chilling effect on overall economic growth. The prospect of production relocation further highlights the long-term implications of these trade tensions, as businesses seek to mitigate risk by diversifying their operations beyond Taiwan.
The report’s findings raise critical questions about the future of US-Taiwan trade relations and the need for proactive strategies to safeguard Taiwan’s economic interests. While the report doesn’t delve into specific recommendations, it implicitly calls for a multi-pronged approach that includes:
- Diversification of Export Markets: Reducing reliance on the US market by actively pursuing trade agreements and partnerships with other countries.
- Strengthening Domestic Demand: Fostering a more robust domestic economy to cushion the impact of external shocks.
- Enhanced Government Support: Providing targeted assistance to businesses affected by tariffs, including financial aid, export promotion, and support for innovation.
The report serves as a timely reminder of the interconnectedness of the global economy and the far-reaching consequences of trade disputes. As the US continues to pursue its trade agenda, Taiwan will need to navigate these challenges with agility and foresight to ensure its continued economic prosperity.
References:
- Zhongxin News Agency. (2025, July 21). 蓝白智库：逾五成台湾企业已受美关税政策实质影响 [Over Half of Taiwanese Businesses Feeling the Pinch from US Tariff Policies: Report]. Retrieved from [Insert original URL here]
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