The 2025 Anniversary of IBMI focused on future trends in the global biomedical industry. Minister of Economic Affairs Kuo Jyh-huei delivered a keynote speech analyzing the impact of the U.S.’s recently implemented reciprocal tariff policy on Taiwan’s industry and proposing forward-looking strategies in response. He acknowledged that while the new policy poses challenges, it also presents an important opportunity for Taiwan’s medical biotechnology sector to expand globally. Kuo urged the industry to target the health needs of the world’s 8 billion population and build a truly internationally competitive Taiwanese biomedical industry.
New Global Opportunities for the Biomedical Industry: Leveraging Taiwan’s Strengths to Overcome Tariff Impacts
The Trump administration’s new round of reciprocal tariffs has stirred turmoil in global markets. Kuo candidly noted that six traditional Taiwanese industries—including fasteners, hand tools, plumbing hardware, automotive parts, machine tools, and machinery—will face the most direct impact. “These industries have low profit margins and slow inventory turnover, so they are more vulnerable to tariff shocks.”
Regarding the highly watched medical biotech sector, Kuo presented data showing that in 2024, Taiwan’s pharmaceutical exports to the U.S. reached $1 billion USD (NT$33.2 billion), accounting for about 30% of total pharmaceutical exports. Although medicines currently enjoy temporary tariff exemptions, most are generic drugs with low prices, intense competition, and difficulty relocating production, making them vulnerable to future tariff fluctuations. Medical devices, however, are set to face a steep 32% tariff. Despite a 90-day grace period, the long-term cost increases could undermine international competitiveness.
Despite these challenges, Kuo remained optimistic about Taiwan’s medical biotech industry. He highlighted Taiwan’s world-leading semiconductor technology and ICT integration capabilities, rich and comprehensive medical big data, a regulatory environment highly aligned with international standards, and mature biomedical industry clusters—advantages that create irreplaceable competitiveness in the global market. He advised the industry to leverage these resources by conducting R&D in Taiwan, establishing production bases in the U.S., or expanding global supply chains through investments and acquisitions. “Taiwanese companies should not limit their vision to the domestic market; the health needs of 8 billion people worldwide represent a business we can pursue.”
Compared to traditional industries, Kuo believes that high-tech sectors like semiconductors and AI servers, through global capacity layouts and flexible adjustments, can better absorb cost pressures from U.S. tariffs—this is Taiwan’s greatest advantage in high technology.
“Outside Customs, Inside Customs” and “Inside Customs, Outside Customs” Dual Strategy Creates New Blue Ocean for International Health Tourism
To further promote the internationalization of Taiwan’s biomedical industry, Kuo proposed a dual-axis development strategy: “Outside Customs, Inside Customs” and “Inside Customs, Outside Customs.” The former encourages large enterprises to lead SMEs in expanding global supply chains. For example, the Ministry of Economic Affairs has already established Taiwan Trade and Investment Centers in the Czech Republic and Fukuoka, Japan, with plans to expand to the U.S. and Southeast Asia to broaden Taiwan’s global presence.
For the latter, Kuo suggested building an AI-powered health screening center at Taoyuan Aerotropolis to offer transit passengers rapid health checks within 60 to 90 minutes. This initiative aims to attract international travelers to Taiwan and promote deep health tourism and medical sightseeing. “We don’t want foreign travelers just passing through; we want them to stay and experience Taiwan’s unique medicinal cuisine and wellness offerings,” Kuo added. He also encouraged businesses to develop exportable medicinal meal kits to build a Taiwanese-branded healthy dining international image.
Minister Kuo: TSMC Is Key to U.S. Tech Revival, Taiwan-U.S. Cooperation Outlook Optimistic
Addressing tariff concerns, Kuo cited the U.K.-U.S. trade agreement to highlight that the U.S. tends to adopt more lenient tariff policies toward friendly democratic countries, with a high likelihood of exemptions. Given the longstanding stable partnership between Taiwan and the U.S., he believes the actual impact will be limited. Kuo also stressed the strategic importance of TSMC, noting that Taiwan’s semiconductor industry has become an indispensable partner in the U.S.’s technological revitalization. “If America wants to be great in technology again, it cannot do so without Taiwan.”
The government has actively introduced countermeasures. Kuo cited examples including tariff reduction negotiations with the U.S., a NT$93 billion industrial support plan, mid-to-long-term economic development blueprints, assistance for Taiwanese businesses to adjust overseas production bases, and deepening Taiwan-U.S. industrial cooperation. Moving forward, Taiwan will continue to strengthen trade and economic ties with democratic countries, responding flexibly and swiftly to become a key strategic partner for international brands and global supply chains.
Kuo further noted that while the U.S. and Japan possess strong research capabilities, their commercialization abilities are relatively weak. Taiwan’s strength lies in bridging that gap. “Though we may be weaker in innovation from zero to one, we excel in scaling from one to one hundred through manufacturing. Taiwan’s manufacturing industry has rich hands-on experience from OEM to EMS.” He concluded, “Rooted in Taiwan, laid out globally, strengthened in the U.S., marketed worldwide”—this is the key strategy for Taiwanese brands to gain competitive advantage on the international stage.
Resource:【2025生策年會】經濟部長郭智輝解析台灣生醫產業如何迎戰美國新關稅
