Taiwan's Businesses Brace for Trump's Tariffs

TaiwanPlus News

With a 20% tariff levied on most Taiwanese goods entering the U.S., Taiwan's businesses are growing anxious as they stare down the barrel of lowered profits and fewer customers.

Transcript

00:00The world is officially in a new age of trade.

00:05U.S. President Donald Trump's sweeping tariffs on dozens of countries took effect on Wednesday.

00:11Taiwan was hit with a 20% tariff on most of its goods.

00:15That import tax will have consequences on local businesses.

00:20The cabinet says it expects at least 42,000 people to either face pay cuts or lose their jobs because of the tariffs.

00:28While Taiwan's tariff rate is less than the 32% first announced back in April,

00:34it still got higher than other countries in the region, like South Korea and Japan, which got 15%.

00:40Auto car parts makers are worried because the tariffs might lead clients to seek out alternatives.

00:58Taiwan's farmers are also bracing for a hit to business.

01:04Orchids, one of Taiwan's major agricultural exports, will be tariffed.

01:09This farmer says that the new import duties will eat into his already thin profit margins.

01:14In response to the tariffs' official start,

01:32Taiwan's cabinet has set aside roughly 3 billion U.S. dollars in tariff relief and subsidies for affected businesses.

01:39But if these tariffs are here to stay, a long-term strategy is needed.

01:53Taiwan's government says to help businesses achieve economic longevity,

01:57it will encourage AI integration and work to increase domestic demand.

02:02There are already plans in the works to help turn these tariff fortunes around.

02:06Hank Xu and Leslie Liao for Taiwan Plus.

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