Taiwan's consumer confidence improves after U.S.-Taiwan tariff deal

Taipei, Jan. 27 (CNA) Taiwan's consumer confidence improved in January to hit a nine-month high as uncertainties were eased after Taipei and Washington agreed verbally to a deal on tariffs on Jan. 15, a survey released by National Central University showed Tuesday.

The local consumer confidence index (CCI) rose 2.86 points from a month earlier to 67.16 in January, the highest level since April 2025, when the index stood at 68.21, according to the survey conducted Jan. 18-21.

The CCI measures sentiment over the next six months across six factors: consumer prices, the domestic economic climate, the stock market, durable goods purchases, employment prospects, and family finances.

The sub-indexes for all six factors improved in January from a month earlier.

The sub-index for consumer prices rose to 37.34 in January, up 4.52 from December, the highest rise among the six factors, while the sub-indexes on the stock market and family finances rose 3.15 and 2.71 respectively, to 29.52 and 80.39, according to the survey.

In addition, the sub-indexes on the local economic climate, purchases of durable goods, and employment also moved higher by 2.3, 2.26 and 2.2, respectively, from a month earlier to 83.69, 98.2 and 73.8 in January, the survey showed.

Under the deal, which has yet to be signed because certain tariff arrangements have yet to be agreed upon, the United States would cut tariffs on Taiwanese goods from 20 percent to 15 percent.

Dachrahn Wu (吳大任), director of the NCU Research Center for Taiwan Economic Development, said the lower tariff gave a big boost to sentiment in non-tech industries because it placed Taiwan on an equal footing with Taiwan's major competitors.

Wu cautioned, however, that, as part of the deal, Taiwan pledged to move some of its semiconductor supply chain to the U.S. through large investments, and the impact of that would have to be watched over time.

At the same time, Wu said, Taiwan's booming stock market, which has recently closed at all-time highs, has benefited many retail investors and helped family finances and the local economic climate.

Meanwhile, Wu warned Taiwan's ruling and opposition parties to overcome their partisan wrangling to deal with the trade agreement, "or Taiwan's economy will get hurt."

He cited U.S. President Donald Trump's recent threat to raise tariffs on South Korea-made goods to 25 percent from 15 percent because Korean lawmakers have yet to approve a Washington-Seoul trade deal signed last year.

Also in January, the home-buying index jointly compiled by NCU and Taiwan Realty rose 2.32 points from a month earlier to 94.95, the university added.

The December CCI survey collected 2,971 valid responses from Taiwanese consumers aged 20 and older and has a confidence level of 95 percent with a margin of error of plus or minus 2 percentage points.