U.S. Comment Clarified by Minister
Taiwanese Government Aggressively Assists Firms in US Expansion to Mitigate Tariff Burden
Taiwanese firms are planning to mitigate the impact of US tariffs by expanding and relocating their operations to the US. This includes increasing investments in US manufacturing facilities, particularly in key industries like semiconductors, electronics, ICT, petrochemicals, and natural gas.
To support this shift, the Taiwanese government is taking several measures. Minister of Economic Affairs J.W. Kuo has announced the establishment of a trade promotion administration office in Texas this month, with plans to set up similar offices in other US states in the future.
The government is also forming a dedicated negotiation team to seek tariff reductions or zero-tariff agreements, modelled on partnerships like the US-Mexico-Canada Agreement (USMCA), aiming for reciprocal tariff improvements. A "Taiwan investment in the US" team will be created to facilitate and encourage Taiwanese enterprises' deeper investments and industrial cooperation on American soil, potentially increasing US job creation linked to Taiwanese investments.
Financial support will be provided to industrial transformation programs, particularly focused on semiconductors and smart manufacturing, to help companies adapt and remain competitive under new trade conditions. The government is also accelerating efforts to eliminate non-tariff barriers and addressing US concerns such as high-tech export controls and illegal transshipment, which affect trade smoothness and compliance.
To lessen the tariff burden on companies, the government is considering assisting them to establish operations in the US, either by investing in distribution channels or warehousing units in major US cities and ports, or by helping them integrate upstream and downstream supply chains. J.W. Kuo stated that the government is seeking a US tariff rate below the current 20 percent.
J.W. Kuo clarified that the US$400 billion investment figure he previously mentioned was an estimate, not a definitive amount. He cited the examples of the EU, Japan, and South Korea, who pledged US$600 billion, US$300 billion, and US$350 billion respectively in US investments during their trade negotiations with the US.
This article was written by Meryl Kao, a staff reporter, and was published by CNA (Central News Agency). The meeting with industry representatives took place on Wednesday last week, on the sidelines of an energy forum in Taipei. The government's efforts to assist Taiwanese firms in expanding to the US are part of a broader strategy to align with US economic and security interests.
- The government's dedication to the creation of a "Taiwan investment in the US" team signifies an intention to stimulate financial growth in the business sector, advancing industrial collaboration and job creation within key industries like semiconductors and electronics.
- To foster a competitive environment under the new trade conditions, the government plans to invest in financial support for industrial transformation programs focusing on semiconductors and smart manufacturing, potentially paving the way for enhanced global competitiveness in the finance industry.
