Taiwan's ICT Industry Braces for Impact as U.S. Tariffs Loom

President Lai Ching-te Assures Support Amidst Potential Economic Challenges

Taipei, April 5 – In the face of looming U.S. tariffs, Taiwan's President Lai Ching-te (賴清德) convened a meeting on Saturday with key representatives from the Information and Communications Technology (ICT) industry. The industry is poised to face significant financial impacts from upcoming tariffs on exported products to the United States.

Presidential Office spokesperson Karen Kuo (郭雅慧) stated that the meeting, held at the presidential residence, allowed Lai to "listen to the views and needs" of the ICT sector. The government unveiled its planned NT$88 billion response measures to the business representatives, with the goal of providing substantial support and mitigating the effects of the proposed duties on Taiwan's exports.

Kuo further announced that Lai would meet with representatives from traditional industries and small and medium-sized enterprises on Sunday, highlighting the government's commitment to addressing the broader economic implications.

Premier Cho Jung-tai (卓榮泰) previously cautioned that Taiwan should be "braced for some shocks" following U.S. President Donald Trump's announcement of a 32 percent import tax on many Taiwanese goods on Wednesday (Washington time). The Cabinet anticipates that the electronics and information technology industries will be most severely affected.

In 2024, ICT products constituted 52 percent of Taiwan's total exports to the U.S., followed by electronic components (13.4 percent) and automobile parts (1.8 percent), according to Cabinet estimates.

Meanwhile, Premier Cho also met with top financial officials on Saturday to discuss strategies for stabilizing financial markets. Taiwan's financial markets are closed for Tomb Sweeping Day and Children's Day from Thursday to Sunday.

Global market volatility is a major concern, as U.S. stocks experienced a significant downturn after Trump's announcement, with the S&P 500 losing 10 percent over two days.

Sources informed CNA that the National Financial Stabilization Fund's committee stands ready to convene when the Taiwanese stock exchange reopens on Monday. The fund's purpose is to stabilize markets during economic crises.

Taiwan is included in a list of countries facing "reciprocal tariffs," slated to take effect on April 9. Trump's administration has framed these measures as an effort to address trade imbalances.

Taipei has voiced concerns, labeling the tariffs as "unfair to Taiwan," and plans to engage in negotiations with Washington to lower the duties or narrow their scope.