The government should run simulations of possible US tariff scenarios and prepare tailored countermeasures to help local businesses weather the looming levies. Such planning would be especially critical for the machinery, molding and auto sectors, even as Taiwan’s negotiation team continues striving for more favorable tariff terms and the elimination of stacking duties.
Remarks by Minister of Economic Affairs J.W. Kuo (郭智輝) highlighted that the ministry remains underprepared for the trade turbulence ahead. During a meeting with local manufacturers on Monday last week, Kuo floated the idea that China Steel Corp could grant price concessions to auto parts suppliers to help offset costs. His suggestion came amid concerns that a finalized 20 percent US tariff on Taiwanese goods would erode competitiveness, particularly when rivals in Japan and South Korea face a lower 15 percent duty.
China Steel, Taiwan’s largest steelmaker, was caught off guard, as the company was not informed in advance of the proposed policy. Kuo’s suggestion drew strong objections from the Labor Union of China Steel Corp, which said such concessions would undermine corporate governance and further weaken a firm that has already slipped into losses.
