MOEA to Invest Over NT$10 Billion Next Year to Boost Overseas Expansion for Tariff-Hit Industries

The Ministry of Economic Affairs (MOEA) will allocate more than NT$10 billion next year to support overseas market expansion for industries impacted by reciprocal U.S. tariffs, including machine tools, plumbing hardware, and plastics and rubber products. The combined budget comes from the Resilience Special Act and the Trade Promotion Fund, aimed at helping Taiwanese manufacturers diversify their export destinations and strengthen competitiveness in global markets.

According to the MOEA, U.S. reciprocal tariffs have directly affected exports of Taiwan’s traditional industries. To mitigate the impact, the ministry is adjusting its trade promotion strategy to focus on alternative markets such as Germany, broader Europe, India, Japan, and Southeast Asia.

For the machine tool sector, the MOEA plans to prioritize Germany, Japan, and key Southeast Asian markets such as Thailand, Indonesia, and Vietnam. Germany and Japan, as manufacturing powerhouses, demand precision, stability, and innovation—areas where Taiwan’s mid-to-high-end and niche products hold strong competitive advantages. In Southeast Asia, industrial relocation and new factory investments are driving rapid growth in automation and machine tool demand, offering vast export opportunities.

For mechanical equipment, expansion efforts will center on Germany, Japan, and India. Assessments show that Germany has a high demand for smart manufacturing, industrial automation, and plastics/rubber machinery; Japan continues to advance precision manufacturing and robotics applications; and India’s manufacturing and infrastructure sectors are expanding rapidly. India, with its solid industrial base and diverse needs, is also emerging as a key hub for global manufacturing upgrades and innovation.

As for base metals and plumbing hardware, the MOEA will target Europe and Japan. Europe’s automotive and industrial sectors emphasize design, environmental protection, and water efficiency, while Japan values precision, reliability, and craftsmanship. Taiwan’s fasteners, hand tools, and plumbing hardware can meet these high specifications, giving local suppliers an edge in entering supply chains and penetrating high-end markets.

The MOEA is intensifying efforts to stabilize and secure orders for exporters. The Bureau of Foreign Trade (BOFT) noted that the 2025 budget includes NT$5.69 billion, while the Resilience Special Act provides an additional NT$10 billion for overseas marketing from 2026 to 2027. The 2026 Trade Promotion Fund will also allocate NT$5.7 billion for trade promotion, pending Legislative Yuan approval. In total, the MOEA’s overseas marketing budget for next year will exceed NT$10 billion.

The International Trade Administration emphasized that these marketing subsidies are not limited to industries affected by U.S. retaliatory tariffs—any sector with export potential will be eligible for support.