Taipei [Taiwan]: Taiwan will not take retaliatory action against the 32% tariff imposed by the US, President Lai Ching-te said on Sunday, according to a report by Focus Taiwan.
While acknowledging that the new tariffs could significantly affect Taiwan’s economy, Lai reassured citizens by pointing to the country’s strong economic fundamentals and global market reach.
“Taiwan has no plans to take retaliatory tariff action in response to the United States’ reciprocal tariffs. Investments by Taiwanese companies in the US will also proceed without any changes, as long as they align with our national interests,” Lai stated.
Taiwan’s Export Strength and Resilience
In 2024, 23.4% of Taiwan’s exports went to the US, while over 75% were sent to other markets. Notably, 65.4% of exports to the US consisted of ICT products and electronic components, sectors in which Taiwan is a global leader.
Lai emphasized that Taiwan’s position in these industries provides a buffer against trade shocks, and his administration is determined to leverage strengths in semiconductors and smart manufacturing to lead the AI revolution.
Moving Toward Dialogue, Not Disputes
To address the tariff issue diplomatically, Lai announced the formation of a special negotiation team led by Vice Premier Cheng Li-chiun. Their aim is to initiate talks with the US, using the USMCA (United States-Mexico-Canada Agreement) as a model to work toward “zero tariffs.”
“The tariff negotiations can start with a goal of ‘zero tariffs,’” Lai added.
Support for Local Industries
On the domestic front, the government will support sectors hit hardest by the new tariffs, particularly traditional industries and SMEs (Small and Medium Enterprises). Plans include accelerating industrial transformation and fostering innovation to keep Taiwan competitive.
Trump’s Global Tariff Move
On April 2, US President Donald Trump announced sweeping new tariffs as part of his new trade strategy focused on “fairness and reciprocity.” This includes:
- China: 34%
- Vietnam: 46%
- Taiwan: 32%
- Japan: 24%
- India: 26%
- UK: 10%
- Bangladesh: 37%
- Pakistan: 29%
- Sri Lanka: 44%
- Israel: 17%
- European Union: 20%
Starting April 9, countries with the largest trade deficits with the US, including India, will face individualised higher tariffs.
