Taiwan calls Trump's 32% tariff 'deeply unreasonable'

Taipei, April 3 (CNA) The Executive Yuan on Thursday decried U.S. President Donald Trump's 32 percent tariff on Taiwanese goods announced hours earlier and said it would lodge a representation with Washington.

In a news release, the Cabinet described the pledged American tariffs, expected to take effect on April 9, as "deeply unreasonable" and "highly regrettable."

Cabinet spokesperson Michelle Lee (李慧芝) said the government would "lodge a solemn representation" with the United States Trade Representative and continue negotiating with the U.S. to "ensure the interests of our nation and industries."

At a news conference in Washington, Trump announced a 10 percent baseline tariff on most goods imported to the U.S., set to take effect on April 5.

However, Taiwan and dozens of other countries, including some of America's main trading partners, will face much higher duties, in what Trump described as an effort to address "unbalanced" trading relationships, reduce trade deficits, and boost American manufacturing capacity.

In particular, the Trump administration will impose a 32 percent "reciprocal tariff" on Taiwanese goods entering the U.S., starting April 9.

The "reciprocal tariffs" target countries that have enacted tariffs, manipulated currencies, subsidized exports, and implemented other trade barriers against the U.S., Trump said.

Nevertheless, certain goods, such as copper, pharmaceuticals, semiconductors, lumber, energy and "certain critical minerals" will be exempt from such levies, according to the White House.

In the news release, Lee said the planned 32 percent tariff was "unfair to Taiwan" because it "does not accurately reflect the trade and economic situation" between the two sides.

Taiwan's exports to the U.S. have increased significantly in recent years mainly because of the surge in demand from the U.S. for semiconductors and artificial intelligence-related products, Lee said.

Lee said many Taiwanese information and communication companies had relocated their manufacturing from China to Taiwan due to American tariffs on goods from China in Trump's first term and the U.S. technology control policy against China over national security concerns.

In that regard, she went on, Taiwan should not be subject to high tariffs in view of its "tremendous contributions to the U.S. economy and national security."

According to Lee, Taiwan's government has been actively cracking down on transshipment by Taiwanese producers, a practice where goods are routed through a third country to alter their country of origin in order to benefit from lower duties imposed on that third country.

The spokesperson hence argued that Taiwan should not be treated in a similar way as Vietnam, which will face a 46 percent tariff, Cambodia (49 percent), and Thailand (36 percent), where the problems of transshipment are more pronounced.

Lee also criticized the "unclear" methodology, scientific basis, and international trade theory behind the U.S.' tariff measures.

According to data from Taiwan's executive body, the U.S. ran a trade deficit with Taiwan at about US$73.9 billion in 2024, a year-on-year increase of 54.6 percent, making Taiwan the sixth largest source of trade deficits for the U.S.

The data also showed that in 2024, the total bilateral trade reached US$158.6 billion, up 24.2 percent compared to the previous year.