Young Liu, chairman of Hon Hai Precision Industry (Foxconn) and leader of the Taiwan Electrical and Electronic Manufacturers' Association (TEEMA), raised concerns over a 20% tariff imposed by the US on Taiwan. During the TEEMA board meeting on March 18, Liu noted this tariff could impact roughly 25% of the association's 3,000 members and emphasized efforts underway to mitigate its adverse effects.
TEEMA's response to tariff challenges
The tariff specifically affects heavy electrical machinery products, among others, within TEEMA's seventeen major product categories. TEEMA Secretary-General Chuan-neng Lin explained that the association is proactively engaging with government bodies to keep members informed about tariff developments and Section 232 measures. The goal is to help businesses prepare and adjust to changing trade regulations. Lin highlighted the association's plans to utilize government support programs aimed at assisting small- and medium-sized enterprises expand their presence in overseas markets.
Central to TEEMA's strategy is the establishment of "TEEMA science parks" in the US, Mexico, and other developing countries. These facilities are designed to offer members opportunities to diversify their investment risks and enhance production resilience. Liu added that the association will leverage both national government channels and Foxconn's influence to secure optimal conditions for these projects, which remain in the planning and negotiation stages.
Energy policy concerns and future outlook
Besides trade issues, energy supply and policy were prominent topics during the meeting. Liu underscored the critical nature of energy for both industrial growth and public welfare. He warned against making quick decisions driven by short-term demand spikes from fast-expanding sectors. Liu advocated for careful deliberation involving all stakeholders to ensure energy strategies support long-term development effectively.
Lin echoed these sentiments, emphasizing the importance of transparency in ongoing tariff discussions, particularly regarding the criteria for tax reductions, exemptions, and origin determinations—factors that directly affect manufacturing processes and business costs. On energy policies, TEEMA expects future plans to ensure a stable power supply, reasonable pricing, and adherence to carbon reduction goals, while also respecting varying viewpoints within the industry.
The association remains active in coordinating government relations, supporting members' strategic adjustments, and advocating for policies that sustain the competitiveness of Taiwan's electrical and electronics sector amid evolving international trade dynamics.
Article edited by Jack Wu
