May 2025 TAITRA Index
Post-Reciprocal Tariffs

 

The Exporter Expectation Index briefly rose to 45.1 after last year's U.S. Presidential election, reflecting optimism toward Trump's pro-business policies.

However, following the Reciprocal Tariffs Announcement, the index sharply fell to 27.8.

This decline, exceeding the concurrent drop in the Exporter Confidence Index, indicates businesses have adopted highly cautious market outlooks amid escalating trade uncertainty.

Over the past six months, Taiwanese businesses have bolstered risk preparedness amid growing trade complexity.

Market diversification has supplanted traditional strategies like cost reduction as their primary approach. Firms are increasingly focused on building stronger foundations against geoeconomic risks, particularly through enhanced financial resilience and improved geoeconomic analysis capabilities.

"Reciprocal Tariffs" prompted Taiwanese businesses to reconsider U.S. production.

Companies already producing or planning U.S. manufacturing increased by 4.1%. Conversely, those rejecting this possibility dropped from 21.1% (2024 year-end) to 15.5%.

This shift reflects strategic global adjustments amidst evolving international trade structures.