From job cuts to suspending plans, Taiwan firms brace for Trump’s tariff storm

At least a quarter of Taiwanese companies have put expansion plans on hold, and 5 per cent have started cutting staff in the shadow of US President Donald Trump’s tariffs on the island, according to a new study.

The findings come amid persistent uncertainty over the potential economic fallout from Washington’s tariff plan, especially following speculation that Taiwan could face a steep 32 per cent import duty – matching the level initially proposed by Trump in early April.

A midterm assessment report released on Monday by two opposition-aligned think tanks found that more than half of the Taiwanese firms with trade ties to the United States expected to be affected by the new tariffs.

The study involved a survey a 238 companies and was jointly conducted by the National Policy Foundation – which is affiliated with the main opposition Kuomintang (KMT) – and the Taiwan People’s Party policy committee.

Under a hypothetical 10 per cent tariff scenario, nearly 60 per cent of the surveyed firms said they expected only minor revenue changes or no significant impact.