US Tariff Reinstatement May Impact Over 100,000 Workers; Labor Minister Highlights 4 Hard-Hit Industries

Although the tariff measures promoted by former President Trump have been temporarily set aside, they continue to introduce uncertainty into the global economy. In a recent interview on the online program 'With Common Sense', Labor Minister Hwang Shen-han indicated that if tariff policies are reinstated, the impact on Taiwan's labor market could be quite profound, with more than 100,000 workers potentially affected, especially in small and medium-sized enterprises and traditional manufacturing industries.
Minister Hwang noted that the range of potentially impacted industries is broad, including machinery, automotive parts, plastics, and metal processing products. He emphasized that these industries have long faced low-price dumping pressures from China, and the addition of US tariff policies would undoubtedly pose a double challenge to business operations and worker stability.
Facing the current uncertain economic outlook, Minister Hwang stated that the Labor Ministry will adopt a proactive strategy to address the situation. He stressed that it is essential to act before any shocks occur rather than reacting passively after the fact. The ministry is already engaging deeply with various traditional industry clusters to understand any signs of reduced production or order declines and to gather firsthand information, while also communicating with employers to prevent illegal dismissals or misuse of downtimes (unpaid leave).
Regarding possible layoffs or reductions in working hours, Minister Hwang warned that according to current regulations, layoffs may only be considered after a significant impact on business operations, and preemptive layoffs are strictly prohibited. He emphasized that the ministry has activated the Employment Stabilization Fund to support workers if employers offer only the basic salary due to reduced hours, allowing the government to subsidize about half of the wage difference to help stabilize employment and reduce layoff pressure. For example, if the original salary is 45,000 NT$ and a worker ends up with just a basic salary of 28,590 NT$, the government can cover half of the nearly 17,000 NT$ gap.
Minister Hwang anticipated that the tariff impact could affect more than 100,000 workers, with the extent of impact closely related to industry reliance on US exports, mainly concentrated in traditional sectors. He reiterated that the Labor Ministry will continue to actively monitor changes in the labor market and prevent illegal dismissals while supporting industries in addressing shocks, thereby fully safeguarding the basic rights of workers.