A flash survey of AmCham Taiwan members reveals widespread concern over uncertainty, even among companies not directly affected by the new duties.

In early April, President Trump announced a 10% baseline tariff on all imports into the United States, alongside additional tariffs targeting goods from countries with large trade surpluses with the United States, including Taiwan – though implementation of the higher rates was later paused for most countries except China.

While critical sectors such as semiconductors were initially exempted, the breadth and abruptness of the announcement created widespread anxiety in Taiwan and across Asia’s export hubs. The White House framed the move as an effort to “rebalance” trade relationships and protect American jobs.

In Taipei, the response was swift. President Lai Ching-te called the tariffs “unreasonable,” emphasizing that Taiwan’s trade surplus with the United States was largely driven by U.S. demand for Taiwanese high-tech components. Foreign Minister Lin Chia-lung said Taiwan was ready to enter discussions with Washington “at any time” and later proposed a mutual zero-tariff agreement to de-escalate tensions. The Presidential Office confirmed Taiwan would not adopt retaliatory tariffs but would seek clarity and negotiate exemptions.

Amid these developments, AmCham Taiwan conducted a flash survey between April 10 and 15, collecting feedback from 79 member companies across key sectors. While only about a quarter reported that their exports to the United States were directly affected by the new tariffs, nearly all respondents pointed to broader ripple effects.

Among companies with significant U.S.-bound shipments, many said more than 30% of their Taiwan-based production was destined for the American market. Several reported figures above 50%. A substantial share of these companies anticipated a drop in orders, with multiple respondents warning that sales could fall by more than 30% if the tariffs remain in place.

Despite those projections, most companies have held off on immediate adjustments. Few indicated plans to cut staff or relocate operations in the near term, though many said they were watching the situation closely.

Strikingly, even companies without direct U.S. exports reported indirect fallout. These included supply chain disruptions, rising logistics costs, and heightened uncertainty among customers and corporate headquarters about economic conditions. Several companies said clients had already begun reassessing procurement strategies or postponing orders in response to the shifting trade landscape.

Uncertainty is what’s most damaging, one respondent wrote. Another warned that inconsistent U.S. policy could even “increase the risk of PRC (Chinese) military or military-like actions against Taiwan.”

In terms of mitigation strategies, few companies reported plans to absorb the costs internally. While some planned to raise prices for U.S. customers, many were instead exploring adjustments to global sourcing patterns or deferring non-essential investments.

Around 27% of surveyed companies said they were actively reconfiguring supply chains in response to the tariffs, while another 25% said they were uncertain about their investment plans going forward. Only 49% reported no changes to their sourcing or investment strategies at this stage.

When asked whether the tariffs would affect their Taiwan-based workforce, nearly one-quarter said they were unsure. Another 56% said they did not anticipate changes for now, while 14% of companies indicated possible postponement of new hires or caution around expansion planning.

The survey also captured sentiment about broader geopolitical factors. All 79 respondents reported at least some degree of impact from the ongoing U.S.–China rivalry, which many said continues to complicate strategic planning. In terms of economic impact, 46% of respondents characterized the effects on Taiwan as negative, citing reduced predictability, heightened compliance requirements, and pressure on regional operations. In comparison, only 33% of respondents to AmCham’s latest Business Climate Survey, conducted in November and December 2024, said they viewed the impact on Taiwan as negative.

In a series of press releases following the tariff announcements, AmCham Taiwan emphasized the urgency of restoring predictability and preserving long-term competitiveness.

“We understand that there are political considerations behind these measures,” says AmCham Taiwan Chairperson Dan Silver. “But tariffs don’t reflect the full story of the relationship between Taiwan and the United States, and they risk eroding deep trust built over decades.” Silver adds that “what businesses want is a stable, predictable environment where they can plan, invest, and operate with confidence. We are calling on both governments to work constructively, and in good faith, toward solutions that preserve the economic gains that have benefited both economies.”

Calls for agreement

The survey also revealed overwhelming support for more formal economic frameworks between Taiwan and the United States. A remarkable 85% of respondents said they support the negotiation of a U.S.–Taiwan trade agreement as a way to resolve imbalances and safeguard bilateral trade. Many also pointed to the need to address non-tariff barriers and regulatory misalignments, both of which can distort trade outcomes.

Domestic industry groups echoed this sentiment. The Chinese National Association of Industry and Commerce (CNAIC), one of Taiwan’s most prominent business associations, issued a statement calling the tariffs “a potentially devastating shock” for small and medium-sized exporters. The group urged Taiwan’s government to engage in intensive diplomatic efforts and consider reciprocal steps such as increasing imports of U.S. agricultural and energy products.

Opposition lawmakers were quick to criticize the government for what they viewed as inadequate preparation. Pointing to Canada and Mexico’s earlier exemption negotiations, Kuomintang officials pressed the Lai administration to move faster and communicate more effectively with Washington.

For their part, Taiwanese officials have projected a message of openness and resolve. Premier Cho Jung-tai confirmed that Taiwan has a “comprehensive plan” for negotiations and a team in place to begin technical discussions. Backchannel talks are already understood to be underway.

For many businesses, the coming months will be pivotal. Some companies have already begun scenario planning for prolonged tariff implementation. Others are hoping that dialogue will ease tensions and prevent the need for more disruptive adjustments.

While Taiwan remains a vital partner to the United States – including as a top supplier of advanced semiconductors – the events of April 2025 have served as a reminder that trade policy remains volatile. For AmCham Taiwan’s members, that unpredictability is both a risk and a call to action.

“We have an opportunity to reset the narrative,” says Silver. “Taiwan is not just a market running a surplus in traded goods – it’s a strategic partner. We urge leaders in both capitals to build on that foundation and on the complementary relationships that define it.”