This has nothing to do with your claims of colonialism. Some people just want Taiwan free from the CCP. Ask HK how great things are under unification.
The whole point of Taiwan's stance is that "Are the people of Taipei/Taiwan broadly Chinese, as a matter of culture and national history?" and "Should Taiwan be free from the CCP?" can in fact be separate questions. To many Taiwanese, support for "Taiwan independence" would be tantamount to denying their history and self-experienced identity. A very real sort of oppression.
Source?
I have Taiwanese sources stating the exact opposite. The Taiwanese youth does not want to be seen as Chinese.
Taiwan is probably going through the same process, just a bit slower since it's not just about territory but about national identity. Each generation weakens the ties to the old "Chinese" identity and strengthens a "Taiwanese" identity, until a tipping point is reached.
If you check Taiwanese opinion polls https://esc.nccu.edu.tw/PageDoc/Detail?fid=7801&id=6963 you'll see that there's a plurality of opinions. People who want independence outnumber people who want unification, but the majority prefers to keep the status quo, for now or forever.
And as long as the US doesn't formally recognize Taiwan, "made in Taiwan" shouldn't even be considered formally correct in the US, even if the issue with Chinese enforcement around this label didn't exist