Taiwan Draws Up Response to U.S. Tariffs

As Taiwan's exporters brace for possible U.S. tariffs, the government is drawing up a response.

Transcript

00:00Made in Taiwan.

00:05This trade show in Taipei is showcasing the best of the country's auto industry,

00:09from traditional auto parts to smart electric vehicles.

00:13But while there's plenty of action here, there's a shadow hanging over the event,

00:17U.S. President Donald Trump's unpredictable tariff policy.

00:21Many of these products go into cars sold in the U.S.,

00:24and tariffs could bite hard.

00:26The total price of our cars is 2,285 million台币.

00:32So it's a very important industry.

00:36Of course, our employees will be able to do it.

00:41The uncertainty over tariffs has led to two reactions in the auto parts industry.

00:46Some companies are in the supply chain,

00:48but some companies are still looking forward.

00:51And auto parts are just one of the many export-reliant Taiwan industries bracing for a hit.

01:02Labor Minister Hong Son Han says machinery, plastics, and even sink taps and other plumbing equipment

01:08stand to suffer a particular blow.

01:11He says over 100,000 jobs are at risk.

01:14But the government says it has a plan.

01:18The cabinet aims to set aside almost 12.6 billion U.S. dollars

01:22to help firms get through the rough times that might be ahead.

01:25The government is also negotiating with Washington.

01:28There's talk of more Taiwanese imports of U.S. goods.

01:31And then there's one of the jewels in Taiwan's economic crown,

01:35semiconductor giant TSMC.

01:37The firm said in March it was going to invest a further 100 billion U.S. dollars into the United States,

01:44where it's already opening plants in Arizona.

01:47The economy minister has told lawmakers that this is just one of the bargaining chips Taiwan holds.

01:52As the details of Taiwan's response come together,

02:07the country's exporters must wait and see on the true extent of the tariff impact

02:11and of any government assistance.

02:13Lee Sin Pan and John Van Trieste for Taiwan Plus.