Written by Min-Hua Chiang. This article examines Taiwan’s 2025 growth surge, driven by ICT exports, capital formation, and booming semiconductors, while showing stagnant consumption, rising inequality, inflation, and housing burdens. It argues that concentrated income in tech undermines social cohesion and urges government spending, diversification, and AI-enabled upgrading across lagging industries for sustainable growth ahead.
Written by Zong-Rong Lee. As part of the Taiwan Insight–IJTS special issue on the Topical Section “Transitions and Challenges in Taiwan’s Economy and Society,” this article presents Zong-Rong Lee’s study on Taiwan’s enduring family capitalism. It traces how political patronage, kinship networks, and market reforms sustained family dominance, raising concerns about competition and long-term adaptability.
Written by Dr Chieh-chi Hsieh. This article asks the question of whether Trump’s tariffs on Taiwan signal a potential divergence of his foreign policy on cross-Strait relations. It argues that although the country needs to remain cautious, the long-term impact might be less severe than one expects. Recent developments suggest that the Trump administration has not altered its foreign policy.
Written by Yun-Chieh Wang. This article analyses the potential impact of Trump’s reciprocal tariffs on the Taiwanese sectors with high value of export to the US, and the impact on the Taiwan-US trade relationship. With the strong economic ties between Taiwan and the United States, it is undeniable that the additional tariff imposed by the Trump administration would affect Taiwanese exports negatively.
Written by Peter C.Y. Chow. This article assesses the impact of Trump’s tariffs from a global trade perspective. It argues that the effects of tariffs in reducing trade deficit remain indeterminate. Applying it to all trading partners will affect US relations with its allies, including Taiwan, and challenge the rules-based trade system that the US nurtured since the end of World War II.
Written by Min-Hua Chiang. This article argues that the TSMC will continue to be Taiwan’s silicon shield, despite its US$100 billion investment pledge in the US, as most of the more advanced chips will be fabricated in Taiwan. That is also why Taiwan faces challenges from the US tariff threat in the near term. TSMC remains Taiwan’s best chip in its negotiations with the US.
