The 2025 IBMI Annual Conference in Taipei zeroed in on emerging global trends in the biomedicine industry. In his keynote, Minister of Economic Affairs Guo Jyh-Huei delivered a thorough analysis of the United States’ new reciprocal tariff measures—outlining their ramifications for Taiwan’s industrial sectors and proposing proactive strategies to both mitigate risks and capitalize on fresh opportunities. While he acknowledged that these policies introduce real challenges, he maintained they also open crucial doors for Taiwan’s medical-biotech companies to deepen their presence in overseas markets. He concluded by urging industry leaders to align their efforts with the health needs of over eight billion people worldwide and to forge a truly competitive Taiwanese biomedicine industry on the global stage. 

Biomedicine Industry Seizes Global Opportunities by Leveraging Taiwan’s Strengths to Mitigate Tariff Impacts

The Trump administration’s new round of reciprocal tariffs has sent shockwaves through global markets. Minister of Economic Affairs Guo Jyh-Huei acknowledged that Taiwan’s six major traditional industries—fasteners, hand tools, plumbing hardware, automotive parts, machine tools, and general machinery—are particularly exposed. “With thin profit margins and slow inventory turnover, these sectors are especially vulnerable to tariff shocks.”

For the closely watched medical-biotech sector, Guo noted that in 2024 Taiwan exported US $1 billion (NT$ 33.2 billion) in pharmaceutical products to the United States, accounting for roughly 30 percent of Taiwan’s total drug exports. Although drugs currently enjoy a temporary tariff exemption, most are low-priced generics facing fierce competition and are difficult to relocate. As tariffs fluctuate, these products may come under even greater pressure. Meanwhile, medical devices will soon face a steep 32 percent tariff; despite a 90-day grace period, sustained cost increases could erode their global competitiveness.

Despite these headwinds, Guo remains optimistic. He pointed to Taiwan’s world-class semiconductor and ICT integration capabilities, its comprehensive medical big-data resources, a regulatory framework aligned with international standards, and mature biomedicine clusters as irreplaceable advantages. He urged companies to capitalize on these strengths by continuing R&D domestically, establishing U.S. production sites, and pursuing strategic investments, mergers, and acquisitions to build resilient global supply chains. “Taiwanese firms shouldn’t be limited to the domestic market—there are eight billion people whose health needs we can serve.”

Compared with traditional industries, Taiwan’s high-tech sectors—such as semiconductors and AI server manufacturers—can better absorb U.S. tariff pressures by leveraging global capacity layouts and making agile adjustments, underscoring their inherent strength.

Dual-Track Strategies to Cultivate International Health Tourism

To drive further internationalization of Taiwan’s biomedicine industry, Guo proposed a dual-axis strategy of “offshore-onshore” and “onshore-offshore.”

• Offshore-onshore: Large enterprises lead SMEs in expanding global supply-chain footprints. The Ministry of Economic Affairs has already established Taiwan Trade and Investment Centers in the Czech Republic and Fukuoka, Japan, with plans to open additional offices in the U.S. and Southeast Asia.

• Onshore-offshore: Establish an AI-powered health screening center in Taoyuan Aerotropolis to offer transit passengers rapid health checks (60–90 minutes), transforming layovers into opportunities for health tourism and medical travel. “We don’t want foreign travelers merely to transit through Taiwan—we want them to stay and experience our unique medicinal cuisine.” Companies could also export herbal medicinal meal kits, creating an international brand for Taiwan-style health cuisine.

TSMC’s Role in the U.S. Technological Renaissance & Taiwan-U.S. Cooperation

Addressing tariff anxieties, Guo cited the U.S.–U.K. trade agreement as a precedent for tariff leniency toward friendly democracies, suggesting Taiwan may receive similar treatment. He believes the real impact on Taiwan will be limited. He emphasized TSMC’s strategic importance: “If the U.S. aims to regain tech leadership, it cannot do so without Taiwan.”

The government has already launched countermeasures—including tariff-mitigation negotiations, a NT$ 93 billion industry support plan, a mid-to-long-term economic blueprint, assistance for overseas production adjustments, and deeper Taiwan-U.S. industrial cooperation. Going forward, Taiwan will strengthen economic and trade ties with fellow democracies, responding flexibly to cement its role as a strategic partner for global brands and supply chains.

Guo also observed that while the U.S. and Japan excel in research, they lag in commercialization—a gap Taiwan can fill. “Although our 0-to-1 innovation may be less pronounced, our 1-to-100 mass-manufacturing capabilities are extremely strong, thanks to Taiwan’s extensive OEM and EMS experience.” He concluded, “‘Grounded in Taiwan, laid out globally, strengthened in the U.S., and marketed to the world’ is the key strategy for Taiwanese brands to gain a competitive edge on the international stage.