- Contact: Chen Ching-chu, News Section
- Telephone: 559828
- Publication Date: August 3, 2025, 18:45
With U.S. tariffs on Taiwanese goods about to take effect, Taichung Mayor Lu Shiow-yen held an online meeting on August 3 with eight central Taiwan county and city leaders to discuss response strategies and submit concrete proposals to the central government. The goal was to lessen the impact of the 20% tariff on local industries and workers. Participants agreed on several key points, including supporting ongoing government negotiations to reduce the tariff rate, demanding transparency in the talks, and protecting local agriculture and industries. They also called on the central government to expedite the NT$10,000 cash payments to citizens and restore recently cut general subsidies to local governments—which are essential for implementing relief measures and revitalizing industries.
No one can remain unaffected by the U.S. tariffs, and local leaders must accept their responsibilities without hesitation. This was the second time since April 7—when the United States announced a 20% tariff on Taiwan—that Taichung Mayor Lu Shiow-yen has gathered the leaders of eight central Taiwan counties and cities to discuss concrete countermeasures. The meeting aimed to pool collective wisdom and develop solutions for the central government’s reference. Led by Mayor Lu, the session included briefings from, south to north, Chiayi City Mayor Huang Min-hui, Yunlin County Magistrate Chang Li-shan, Changhua County Magistrate Wang Hui-mei, Nantou County Magistrate Hsu Shu-hua, Miaoli County Magistrate Chung Tung-chin, Hsinchu County Deputy Magistrate Chen Chien-hsien, and Hsinchu City Acting Mayor Chiu Chen-yuan, each describing the challenges faced by their jurisdictions, their strategies, and recommendations for the central government.
In Miaoli, Magistrate Chung participated in the video conference from the Miaobei Art Center. Before the meeting, he instructed relevant departments to compile and analyze a comprehensive list of industries likely to be affected, conduct interviews with businesses and food manufacturers, and develop countermeasures. Earlier today, before the session started, Magistrate Chung was also briefed by the county’s Economic Development, Agriculture, Health, Finance, and Labor and Youth Development Departments, as well as the Industrial Commercial Development & Investment Promotion Committee, on the latest information and specific response plans.
Magistrate Chung observed that the United States’ 20% tariff on Taiwan remains a significant obstacle for Central Taiwan's export-driven industries. In Miaoli County, the economy is primarily composed of small and medium-sized enterprises. In recent years, local industrial parks have matured, with a large share of exports going to North America, mainly in sectors such as semiconductors, electric vehicle components, and precision machinery. Other impacted sectors include automotive parts and mold processing. Due to their limited capacity to absorb risks, these industries are bound to experience substantial impacts.
Chung outlined the county government’s key policies in response to the new U.S. tariffs, developed after reviewing corporate interviews and industry analyses. These include: launching an “Industrial Tariff Impact Response Task Force” to coordinate across departments in addressing business needs and crisis management; establishing a “One-Stop Enterprise Service Platform” to help companies access subsidies, financing, and tax relief; conducting company visits and industry forums to gather feedback and identify ongoing needs from the grassroots level; and creating an “Employment Transition and Talent Training Platform” to support workers from at-risk companies through job placement, vocational training, and psychological support assistance; and strengthening data analytics and early-warning systems to monitor export performance and assess potential risks closely.
Taichung Mayor Lu Shiow-yen, after hearing updates from each county and city leader on local industries and exchanging views, reached a consensus to maintain close contact among the counties and cities and to improve communication and coordination with the central government. She then introduced 15 proposed measures from the “Central Taiwan Regional Governance Platform” to the central government in response to the U.S. tariffs.
- “Continue negotiations to secure a lower tariff rate” — Support the central government in ongoing negotiations with the United States to obtain a more favorable and reasonable tariff rate (aiming for below 15%). In particular, negotiations on Section 232 provisions affecting high-tech products like semiconductor chips should be reinforced, ensuring the rate stays at or below current levels to maintain Taiwan’s competitive advantage.
- “Stabilize the exchange rate to support industries” — The exchange rate is a major cost factor for industries. The government should implement measures to stabilize it and prevent further harm to businesses.
- “Support allocation of a special budget” — A dedicated budget is crucial for funding subsidies and support programs for affected industries. Legal procedures for this should be expedited and streamlined “generously, swiftly, and simply.”
- “Promptly restore local subsidies reduced by the central government” — Essential subsidies that the central government is legally obligated to provide to local governments are vital for daily operations. Further cuts will worsen local fiscal issues and indirectly limit support for affected industries. The central government should restore these funds quickly.
- “Accelerate the universal cash payment of NT$10,000” — Amid the dual challenges of flooding and tariffs, issuing NT$10,000 in cash to all citizens is a crucial step to stabilize public sentiment and support households. This should be expedited.
- “Freeze price increases on water, electricity, fuel, and basic necessities” — The government should regulate the prices of water, electricity, fuel, and essential goods to prevent adding to the burden on businesses and the public.
- “Safeguard labor rights and employment” — Since tariff impacts can affect supply chains and cause unemployment, the government must focus on protecting labor rights, maintaining stable jobs, and ensuring basic livelihood security.
- “Protect agriculture and uphold the defensive line” — Food security and public health are critically important. In negotiations, the central government must not compromise agriculture or public health, and should uphold protective measures for agricultural products, such as setting a “red line” similar to South Korea’s.
- “Publish the list and tariff codes of affected industries” — The central government should quickly release the list of industries impacted by the tariffs and their specific tariff codes, enabling businesses to create targeted response plans.
- “Disclose tariff negotiation details and trade-offs” — Strongly urge the government to immediately disclose the content of negotiations with the United States, including trade-offs such as procurement, investment, or market access, along with support measures. These should not be kept secret simply because negotiations are ongoing, as other countries have revealed such details even during negotiations.
- “Assist industries in diversifying overseas markets” — Through overseas Taiwanese business networks, foreign governments, and trade organizations, actively assist domestic industries in expanding markets outside the United States to distribute export risks.
- “Subsidize industries to participate in international trade fairs” — Taichung City has already allocated NT$25 million from its second reserve fund to support nine severely impacted manufacturing sectors in participating in overseas exhibitions through industry associations to secure orders. Since the central government has more financial resources, it should consider expanding this program to subsidize industries and local governments in helping businesses attend international exhibitions and trade missions, aiming for market diversification.
- “Strengthen industrial talent cultivation” — Talent is the foundation of national and industrial growth. The central government should implement response programs to enhance talent development.
- “Conduct rolling industry surveys and maintain communication with local governments” — Because the scale and timing of industry impacts can vary, the government should carry out ongoing rolling surveys of affected industries to implement stage-specific assistance measures. As industries are based in local jurisdictions, local governments have a better understanding of their conditions, and the central government should strengthen dialogue with them and adopt their proposals for more effective responses.
- “Require origin labeling and impose import quotas” — Without harming agriculture, implement mandatory country-of-origin labeling for imported agricultural products and impose import quotas on certain items, such as rice, to minimize the impact on domestic farmers.
Mayor Lu Shiow-yen expressed her gratitude to the participating county and city leaders for coming together despite their ongoing flood relief efforts. She highlighted that Taiwan is currently facing two major challenges: severe flooding and the U.S. tariffs. Among Taiwan’s regions, Central Taiwan—with its diverse industries—is the area most heavily affected by the tariffs. Mayor Lu hopes the central government will seriously consider the proposed solutions to lessen the impact on various industries and workers.