New Minister of Economic Affairs Kung Ming-hsin (龔明鑫) yesterday said that as some industries face higher US tariffs than their foreign rivals, it leaves room for firms to tap non-US markets and adopt different strategies.
“I believe Taiwan will always have a path to follow in any situation,” Kung told reporters after his inauguration ceremony in Taipei, addressing the US’ announcement of a 20 percent tariff on Taiwanese goods last month.
“Tariffs are a pretty complicated matter,” he said. “If competitors seize the US market with lower tariffs, it means non-US markets open up very big opportunities.”
Photo: CNA
“It is not entirely the case that high tariffs mean there is no way forward,” Kung said. “It depends on the situation.”
Kung, formerly Executive Yuan secretary-general, replaced J.W. Kuo (郭智輝) as head of the ministry, after Kuo resigned last month citing health reasons.
Kung said he would “prioritize the economy” and take action on tariff response measures.
While an investigation under Section 232 of the US Trade Expansion Act is ongoing, the government would continue to monitor developments and consult with technology industries to devise countermeasures, he said.
The Executive Yuan’s Office of Trade Negotiations and Vice Premier Cheng Li-chiun (鄭麗君), who leads the delegation on US tariff talks, would remain in charge of the trade talks, but the ministry would play a supporting role on the front line and behind the scenes, Kung said.
Kung also thanked the legislature for passing amendments to the Special Act for Strengthening Economic, Social and National Security Resilience in Response to International Circumstances (因應國際情勢強化經濟社會及民生國安韌性特別條例).
As the act includes a NT$93 billion (US3.04 billion) special budget for industrial support to counter the impact of US tariffs, the Executive Yuan would soon submit a special budget, and the ministry would provide urgent assistance, he said.
The ministry would focus on bolstering infrastructure investment, supporting small and medium-sized enterprises, and traditional industries, improving water management, ensuring a stable power supply, and promoting the nation’s high-tech industry abroad, Kung said.
“We hope to make Taiwan a country where the economic sun never sets,” he said.
Kung yesterday also met with leaders from major industry associations — including the Chinese National Federation of Industries, the Chinese National Association of Industry and Commerce, the General Chamber of Commerce of the Republic of China, the National Association of Small and Medium Enterprises, and the Taiwan Electrical and Electronic Manufacturers’ Association — to discuss the economic situation.
Business leaders are concerned about exchange rate stability, tariff negotiations, carbon fees, labor supply and the minimum wage, Kung told reporters after the meeting.
The special budget already includes NT$5 billion to encourage purchases of domestically made equipment, and NT$7 billion to help firms explore new markets, he said, adding that the ministry would continue to monitor its implementation.
Additional reporting by CNA
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