TAIPEI, Taiwan: Taiwan's leadership was on high alert ahead of the U.S. tariff announcement, with President Lai Ching-te convening senior officials to prepare for potential fallout.

The meeting, held on Monday night at the president's official residence, focused on assessing the risks of new U.S. trade measures and mapping out contingency plans. According to a statement from the presidential office this week, Lai was joined by Premier Cho Jung-tai and other members of the Taiwan-U.S. trade task force.

The urgency stemmed from the then-forthcoming tariff package by the Trump administration, targeting countries with significant trade surpluses with the United States. U.S. Treasury Secretary Scott Bessent recently stated that the administration was focusing on what he called the "Dirty 15" countries, although he did not name them. However, based on U.S. Census Bureau data, Taiwan was expected to be on that list, alongside China, South Korea, and the European Union.

The presidential office said the meeting covered a range of tariff scenarios, possible outcomes, and government responses.

The official reported on different scenarios for the tariffs the United States was about to introduce, "simulated and estimated the possible impact, and prepared contingency plans," Lai's spokesperson, Karen Kuo, said in a statement.

Lai asked Cho and National Security Council Secretary-General Joseph Wu to make the best possible responses to ensure Taiwan's interests and economic and financial stability, as well as to provide strong support and assistance to industries that may be affected, Kuo added.

When questioned by lawmakers this week, Deputy Finance Minister Frank Juan stated that the electronics sector, particularly semiconductors, may be spared a significant impact due to Taiwan Semiconductor Manufacturing Company's (TSMC) new US$100 billion investment in the United States. As it turns out he was correct, as Trump in his announcement on late Wednesday did not include tariffs on TSMC.

The tariffs were announced on Wednesday by U.S. President Donald Trump, triggering a global stocks meltdown, and a plunge in the value of the U.S. dollar. The Dow Jones on Thursday closed down 1,679 points, while the Nasdaq Composite shed nearly five percent.

The wider Taiwanese economy, sixty percent of which relies on exports, is likely to be badly hit with the 32 percent tariff Trump imposed.

Taiwan had an overall trade surplus of almost $74 billion in 2024. A report by Bloomberg said there could be a 3.8 percent contraction of GDP due to a anexpected fall in exports to the U.S. because of the new tariff.  

Taiwan's trade surplus with the U.S. surged 83 percent last year, with exports reaching a record $111.4 billion, mainly driven by semiconductors and other high-tech goods.