The Ministry of Economic Affairs yesterday said certain local industries should position themselves for the effects of the incoming US administration after a report said that US president-elect Donald Trump was considering declaring a national economic emergency to provide a legal ground for his tariff plans.
A CNN report on Wednesday said that Trump was mulling levying new tariffs on all imported goods from allies and adversaries by using the International Economic Emergency Powers Act, which authorizes a president to manage imports during a national emergency.
The news renewed a sense of uncertainty on trading floors across Asia yesterday, with the TAIEX in Taipei sinking 1.39 percent, while other regional markets such as Hong Kong, Shanghai, Tokyo, Sydney, Wellington, Mumbai and Bangkok also moved lower.
Photo courtesy of the Executive Yuan
Deputy Minister of Economic Affairs Ho Chin-tsang (何晉滄) at a news conference after the regular Cabinet meeting yesterday said the possible implementation of new tariffs by the incoming Trump administration might have an impact on Taiwan’s information and communications technology sector, as well as automobile industries.
“We are currently discussing contingency responses with relevant trade associations,” Ho said.
The ministry’s preliminary understanding is that Trump’s potential national economic emergency declaration could mainly affect Taiwan’s auto parts, high-end servers, laptops and desktops destined for the US market, compared with other products, he said.
The ministry has been in close contact with firms and trade associations in the two industries and would discuss the details with industry players after the new US government officially announces the content of its policy, Ho said.
The ministry would also discuss with trade associations to assist firms willing to invest in the US to address the tariff issue, he said.
Following the US presidential election on Nov. 5 last year, Vice Premier Cheng Li-chun (鄭麗君) has headed a task force in charge of trade and technology exchanges with the new US administration.
Cabinet spokesperson Michelle Lee (李慧芝) at yesterday’s news conference said that the task force still holds meetings on a regular basis and would unveil more details about its responses after Trump takes office on Jan. 20.
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