Taiwan invests billions to combat US tariffs impact

In April 2025, Taiwan announced a financial package to assist industries suffering due to new tariffs imposed by the United States. The US tariffs were part of President Donald Trump's aggressive trade policy that affected many of the country's trading partners, including longstanding allies. This development follows Trump's decision to apply a significant 32 percent tax on Taiwanese imports, which has been widely criticized by Taiwan's government as unreasonable and extreme. The assistance package, totaling NT$88 billion (approximately $2.7 billion), aims to address various needs within industries and society. Premier Cho Jung-tai explained that the funds would target the industrial and agricultural sectors, focusing on financial support, tax incentives, and market diversification. The impact of these tariffs is seen not only in the immediate economic landscape but also potentially affects Taiwan's critical semiconductor industry, which has been a point of contention between Washington and Taipei. Taiwan had made efforts to avoid these tariffs by pledging greater investments in the US and increased energy purchases. Despite these attempts, the significant tariff increase has raised concerns about the possible shrinking of consumer markets and the weakening of Taiwan's competitive advantage. Vice Premier Cheng Li-chun explicitly stated that the imposed 32 percent tariff was an