The United States has reached agreements with several countries on its reciprocal tariff policy. Taiwan's exports are tentatively subject to a 20 percent tariff. Although final negotiations have not yet been concluded, the investment plans of overseas Taiwanese businesses are bound to be affected. On August 12, the Overseas Community Affairs Council (OCAC) held a press conference, where OCAC Minister Chia-Ching Hsu and Chairperson Ms. Rebecca P. H. Lin of the Overseas Credit Guarantee Fund explained the anticipated impacts and response measures. The goal is to support overseas Taiwanese businesses in strengthening operational flexibility, expanding markets, and jointly navigating the new global trade landscape.

Minister Hsu noted that the OCAC has recently held roundtables in Europe, North America, Asia, and Oceania to gather feedback from overseas Taiwanese businesses. Many participants voiced the need for greater financial and talent support. In response, the OCAC has partnered with the Overseas Credit Guarantee Fund to launch a special financing program to assist Taiwanese businesses during this period of heightened uncertainty. Chairperson Lin underscored that the OCAC upholds the principle of "providing emergency relief rather than long-term subsidies" and highlighted its extensive experience in implementing relief programs, including successful cases during the pandemic, natural disasters, and other societal disruptions. The new relief program is set to begin in mid-September, aiming to offer timely financing assistance for businesses.

Minister Hsu clarified that the Overseas Credit Guarantee Fund is dedicated to providing credit guarantees specifically for overseas Taiwanese businesses. For domestic enterprises, loan guarantees should be sought through relevant banks or other domestic credit guarantee funds. Chairperson Lin explained that this round of measures will raise the global credit limit for the same economic interest group from USD 2 million to USD 3 million, while keeping the credit limit for a single client at USD 2 million. In addition, the definition of "economic interest group" is no longer restricted to businesses established in New Southbound target countries or in Africa, thereby giving overseas Taiwanese businesses greater flexibility in mobilizing funds worldwide.

In addition, for overseas Taiwanese businesses affected by the U.S. reciprocal tariff policy, those whose revenue from exports to the United States has declined by 10 percent or more years are eligible to apply for a special loan guarantee program of up to USD 300,000. The loan carries a three-year term, extendable once for a maximum of six years. Applications will be open until the end of September next year.

To ease the burden on overseas SMEs, the OCAC will subsidize guarantee fees for up to three years and partially cover interest payments for six months. The interest subsidy will be based on Chunghwa Post's two-year time deposit floating rate, helping businesses reduce financing costs. Chairperson Lin emphasized that this program draws on the Overseas Credit Guarantee Fund's experience in implementing relief measures during natural disasters, social disruptions, and the pandemic. Its goal is to help eligible overseas Taiwanese businesses maintain stable operations and weather the impact of tariffs.

Ms. Shu-Chin Chen, a professional accountant in Singapore and newly appointed the 33rd president of the Asia Taiwanese Chambers of Commerce (ATCC), recalled that during the joint meeting of the board and supervisors in July, Minister Hsu listened to industry feedback and proposed measures, and put forward the idea of establishing a relief program through the Overseas Credit Guarantee Fund. She described the relief program as a "timely rain" for overseas Taiwanese businesses, providing strong support for cash flow management and, at a critical moment in the global supply chain restructuring, allowing Taiwanese entrepreneurs to feel the backing of their home country while easing financial pressures.

"This is not just relief—it is a concrete rescue operation," said Mr. Chong-Bin Chang, Honorary President of the Taiwanese Chamber of Commerce in Latin America (TCCLA). He pointed out that many Latin American countries are severely affected by U.S. political and trade policies. For example, Brazil faced tariffs of up to 50% due to political interference, and Colombia was hit with an additional 25% tariff for refusing to accept deported illegal immigrants. Mexico, as a signatory of the US-Mexico-Canada Agreement (USMCA), is comparatively less affected, but the region as a whole remains highly uncertain. He praised the government's swift and comprehensive measures as a reflection of its commitment to overseas Taiwanese businesses. He also urged companies to take advantage of this program, which not only provides short-term relief but also offers an opportunity to expand into new markets and enhance competitiveness.

Minister Hsu encouraged Taiwanese businesses to find their market positioning and develop region-specific strategies for the EU, North America, and the Asia-Pacific. She expressed confidence that, with their flexibility and resilience, overseas Taiwanese entrepreneurs can quickly gain a foothold and capture early opportunities in these markets. She also cautioned that the issue of "falsifying product origin" is a major concern for North America and the EU. Companies should exercise caution to avoid such risks, which could lead to individual losses or disrupt broader industry development. Only through professional innovation and upgraded R&D can businesses turn these challenges under the new global tariff landscape into opportunities for industrial advancement and sustainable growth.

---