Group 1 - The imposition of a 20% special tariff on Taiwan by the Trump administration signifies a shift in U.S. policy towards Taiwan, revealing the underlying economic pressures rather than a supportive alliance [1][3] - The tariff on Taiwan's key industry, machine tools, has surged from 4.7% to 24.7%, while a proposed 100% tariff on semiconductors threatens to choke Taiwan's economy, as semiconductors account for 40% of its total output [3][4] - The response from Taiwan's government, emphasizing continued communication with the U.S., contrasts sharply with the harsh economic realities faced by Taiwanese manufacturers, who are now experiencing layoffs and exploring costs for relocating production to the U.S. [6][8] Group 2 - The Trump administration's trade policies reflect a broader "America First" strategy, where Taiwan is treated as a bargaining chip, similar to previous negotiations with Japan and South Korea [4] - The recent tariffs have exposed the fragility of Taiwan's reliance on U.S. support, as the notion of a "special relationship" is undermined by economic coercion [6][8] - The military rhetoric from China's defense ministry indicates a readiness for unification, suggesting that Taiwan's strategic position is increasingly precarious amid shifting U.S. policies [6][8]

Group 1 - The U.S. has postponed the deadline for "reciprocal tariffs" to August 1, causing concerns in Taiwan regarding the tax rates to be imposed [1][2] - A report from a survey of 238 companies indicates that over 50% have already felt the direct impact of the proposed tariffs, with more than half predicting a revenue decrease of 10% to 30% if tariffs rise to 20% [1][2] - Small and medium-sized enterprises (SMEs), particularly those with fewer than 50 employees, are expected to be hit hardest, with 35.8% forecasting revenue drops exceeding 30% [1][2] Group 2 - Traditional industries, such as rubber manufacturing, are projected to suffer the most, with over 60% of firms expecting revenue declines of more than 30% if tariffs are implemented [2] - The report aligns with recent statistics from Taiwan's Ministry of Economic Affairs, showing a significant drop in export orders to the U.S. for traditional industries [2] - Although high-tech sectors like electronics have seen an increase in orders, this is attributed to U.S. firms stockpiling, and over 40% of high-tech companies anticipate future revenue declines due to potential tariff expansions [2][4] Group 3 - The report identifies five structural challenges faced by SMEs in Taiwan, including currency volatility and rising industrial electricity prices [3] - Policy recommendations include stabilizing the exchange rate and reviewing energy policies to support affected industries [3] - The potential economic impact of U.S. and Chinese economic downturns on Taiwan's economy is highlighted, with estimates suggesting a 0.29% decline for every 1% drop in the U.S. economy [3] Group 4 - The appreciation of the New Taiwan Dollar has led to significant foreign exchange losses for companies, with one major postal service reporting a loss of 140.3 billion NTD due to currency fluctuations [4][5] - The hospitality sector is also feeling the effects, with hotels reporting decreased revenue due to reduced international tourist arrivals linked to both tariffs and currency appreciation [4][5] - Concerns are raised about the lack of transparency in tariff negotiations, with political implications affecting economic stability and business confidence [5][6]