Tariff talks between Taiwan and the United States are nearing the finish line, and the mood is cautiously hopeful. Most of the tough issues have already been ironed out, and a deal could be just around the corner, Minister of Economic Affairs Kung Ming-hsin said.
Speaking with reporters before the ministry’s regular business briefing, Kung said the government is simply waiting for a final wrap-up meeting to seal the agreement. With the US wrapping up trade deals with several other countries, Taiwan’s results may be announced at the same time, he noted.
Kung also shared encouraging news on the broader economy. Taiwan’s economic growth last year may have outperformed expectations, potentially beating the 3.54 percent forecast issued by the Directorate-General of Budget, Accounting and Statistics in November. The driving force, he said, has been booming demand tied to artificial intelligence.
AI-related growth—especially in semiconductors and AI servers—has given the economy a strong lift. Still, not every sector is enjoying the same tailwinds. Kung recognized that many conventional businesses are under stress as they contend with more profound structural issues.
To help these businesses adjust, the government has set aside NT$46 billion from a larger NT$570 billion special budget aimed at strengthening economic and social resilience. Interest has been strong: since August, about 2,600 companies have applied for support.
One of the biggest pressures facing traditional industries is oversupply in China, which has triggered fierce price competition as Chinese domestic demand remains weak. With no clear end in sight, Kung said Taiwanese firms need to rethink their strategies—focusing on better-quality products, stronger information security, and higher efficiency through digital upgrades.
He also urged companies to look beyond crowded, price-driven markets and instead target niche areas that require high certification standards, where competition is based more on expertise and value than on cost alone.
Over the next two years, the government plans to use the special budget to strengthen the long-term resilience of traditional industries, Kung said.
Looking ahead, Kung said he feels “slightly optimistic” about Taiwan’s investment climate and economic outlook this year, citing stable export demand and solid industrial investment.
While overseas investment approved from January to November last year slipped to US$36.3 billion, domestic investment told a different story. Data from the statistics agency showed local investment rose 10 percent after inflation, largely driven by advanced technologies—signaling, Kung said, that investing abroad has not come at the expense of growth at home.
