Taiwan News Roundup - August 25, 2025

TAIPEI, Aug. 25 - Voters, politicians and markets in Taiwan saw a flurry of developments today as the public registered its views on political recalls, trade negotiations, energy policy, defense planning and stock market performance.

Landslide Rejection of Recall Votes A recall campaign targeting seven Kuomintang (KMT) legislators failed overwhelmingly, marking the second consecutive defeat for the ruling Democratic Progressive Party (DPP) in its attempt to unseat opposition lawmakers. Both recall rounds have been construed as a public rebuke of DPP governance and its perceived focus on “Taiwan independence” rhetoric over economic and social welfare.

Premier Seeks Support for U.S. Tariff Agreement Premier Cho Jung-tai told the Legislative Yuan that tariff negotiations with Washington remain focused on securing a lower rate, ensuring due process under U.S. trade law, and avoiding overlapping duties. He reported that a provisional U.S. reciprocal tariff of 20% is under discussion-down from an initial rate plus 32%-and exempted critical sectors such as semiconductors, steel and auto parts on national security grounds. Cho said a final deal will require Legislative Yuan approval under the Conclusion of Treaties Act and noted that some 73 firms and 2,388 workers have already felt tariff impacts.

Nuclear Restart Referendum Falls Short In a nonbinding referendum held alongside the recalls, only about 22% of eligible voters supported restarting the second reactor at the Maanshan nuclear power plant, below the 25% quorum needed for approval. The vote underscores continued public ambivalence toward nuclear energy amid Taiwan’s broader energy challenges.

Plans for Indigenous Military Drones Taiwan’s Ministry of National Defense announced a two-year initiative to produce or procure some 50,000 fully indigenous military drones, reflecting lessons learned from recent conflicts abroad and an emphasis on strengthening asymmetric defense capabilities. Domestic firms will receive increased support to scale up drone design and manufacturing.

Taiwan Stocks Close Lower The Taiwan Stock Exchange’s main index lost 0.82% at today’s close as losses in the glass and chemicals sectors weighed on sentiment. Swancor Holding surged 10.0%, while Qisda Corp and Favite Inc rose nearly 10% each; in contrast, ITEQ Corp fell 7.6%, dragging the market downward.

Headline Snapshots from Major Dailies

  • United Daily News and China Times report that KMT heavyweight Lu Shiow-yen has opted not to run for party chair.
  • Economic Daily News highlights the Taiex hitting a new high despite tariff jitters.
  • Liberty Times warns that allocated tax revenue next year may outstrip distribution capacity.
  • Taipei Times criticizes the KMT pension fund plan as risky.
  • Premier Cho’s tariff remarks and U.K. passenger’s arrest at Taoyuan Airport round out today’s top items.