Taiwan’s public policy think tanks and other organizations jointly held a seminar on the impact of the United States’ “tit-for-tat tariffs” policy on Taiwan on the 13th. They invited scholars and experts to discuss the related issues. Experts urged the public to take a rational look at the tariff issue, and the government should assist the public in understanding the tariff content and its effects in a simple and straightforward manner.
Presenter and director of the North American Taiwan Studies Association, Zhang Zhuqin, pointed out that the public is very concerned about tariff issues, but the variety of tariffs and rapidly changing information make it difficult for people to clearly understand the content. This event invited experts in the economic field to lead everyone to understand the actual content of tariffs and the actual impact on Taiwan in an accessible way.
Hu Hanwen, a researcher at a Taiwan think tank, stated that the United States officially implemented the “tit-for-tat tariffs” policy on August 1st in response to President Trump’s concerns about global trade inequality, sparking high attention from various countries including Taiwan. However, the lack of understanding about tariffs has led to a proliferation of online misinformation, including claims by political figures stating Taiwan’s tariff is 32%, when in reality it is 20%.
Hu Hanwen mentioned rumors suggesting Taiwan Semiconductor Manufacturing Company (TSMC) would face 100% tariffs, but the US has clarified that establishing a factory in the US or promising to do so would exempt them from tariffs. Although tit-for-tat tariffs will impact Taiwan’s industries, it is not the total collapse as portrayed by external parties. Young people should take a rational approach and avoid being misled by panic-inducing statements.
Wang Guochen, a research assistant at the First Research Institute of the Chung-Hua Institution for Economic Research, analyzed four different types of Trump tariffs. First is the International Emergency Economic Powers Act (IEEPA) targeting countries, characterized by its “swift and forceful” nature, such as India facing a 25% punitive tariff for purchasing Russian oil.
Wang Guochen explained the second type, Section 232 of the Trade Expansion Act targeting industries, currently under investigation, includes the semiconductor industry of concern to Taiwan, with a proposed 100% tariff increase, and rumors of a 250% tariff on the pharmaceutical industry.
He further explained the third type, Section 301 of the Trade Expansion Act targeting unfair trade practices, seen as a key aspect of the US-China trade war, with a series of tariff sanctions initiated by Trump in 2018 and chip, shipbuilding, and shipping logistics investigations added by Biden in 2024.
Regarding the latest Trade Act of the US Congress passed in July, Wang pointed out that the Overcapacity, Overtrade, and Overrule Big Act results from China’s excess capacity due to cross-border e-commerce, with a proposed 54% ad valorem tax. However, this could also affect other normal businesses in countries along with the intended targets.
Tsai Ming-fang, a professor of economics at Tamkang University, stated that Taiwan’s export structure and product differentiation competition with other countries differ, making a simple comparison of tax rates with countries like Japan and South Korea meaningless. Tit-for-tat tariff enforcement will indeed affect Taiwanese businesses, but imposing higher tariffs on China by the US can also mitigate competitive pricing pressures from Chinese companies.
Tsai explained that Taiwan’s Changhua metal and hardware industry, competing mainly with Vietnam, faces a cumulative tariff of up to 55%, often overlooked by many media outlets. He added that Taiwan is at the forefront of semiconductor technology development, and foreign investment can maintain companies’ competitiveness, allowing other non-semiconductor industries to utilize more resources, ultimately enhancing Taiwan’s economic resilience rather than depleting it.
Liu Yuxi, associate professor of communication management at Shih Hsin University, highlighted the importance of social communication in light of any policy impacting citizens and their reactions influencing policy outcomes. The ongoing tariff negotiations do not violate democratic principles; accusations of secretive negotiations are standard misinformation tactics.
Liu elaborated that the customary practice in international trade negotiations is swift authorization of negotiation teams consulting various industry associations continuously until the negotiation results are reached. However, the unpredictable nature of the Trump administration could result in changes up to the last moment, requiring thorough communication to inform the public, validated by the legislature.
Acting Vice Premier of Taiwan’s Executive Yuan, Zheng Lijun, mentioned that currently, only the European Union is an exception in calculating stacked tariffs with the US. Japan is seeking exemption while other countries follow the principle of stacking tariffs. Taiwan’s follow-up negotiation objectives include seeking more reasonable tit-for-tat tariff rates, as well as jointly negotiating Section 232 provisions while striving to avoid stacked original tariff rates.