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Taiwan will not retaliate against Trump's tariffs: Lai

04/06/2025 09:59 PM
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President Lai Ching-te. Photo courtesy of the Presidential Office. April 6, 2025
President Lai Ching-te. Photo courtesy of the Presidential Office. April 6, 2025

Taipei, April 6 (CNA) Taiwan has no plans to retaliate against U.S. President Donald Trump's 32 percent tariff on Taiwanese goods, President Lai Ching-te (賴清德) announced Sunday, as he sought to ease public fears over the potential economic fallout from Washington's latest trade measure.

In a video address to the nation, Lai acknowledged the "significant impact" that the 32 percent tariff would have on Taiwan's economy, but urged the public not to panic, citing Taiwan's strong economic fundamentals.

He noted that although 23.4 percent of Taiwan's exports went to the U.S. in 2024, over 75 percent were shipped to other markets. Among the goods exported to the U.S., competitive ICT products and electronic components made up 65.4 percent--a sign that Taiwan's economy remains highly resilient, he said.

"Taiwan has no plans to take retaliatory tariff action in response to the United States' 'reciprocal tariffs.' Investments by Taiwanese companies in the U.S. will also proceed without any changes, as long as they align with our national interests," Lai said in the 8-minute video.

To mitigate the impact of the tariffs, Lai said his government has formed a negotiation team led by Vice Premier Cheng Li-chiun (鄭麗君) to launch formal talks with the United States.

"The tariff negotiations can start with a goal of "zero tariffs," modeled after the USMCA (United States-Mexico-Canada Agreement)," Lai said.

Video: The Presidential Office (in Chinese, with Chinese subtitles only)

The government also plans to expand purchases of American goods -- including agricultural, industrial, petroleum and natural gas products, and defense equipment -- in a bid to reduce the trade deficit, the president said.

Lai said his government will also assist Taiwanese companies to expand their investments in the United States, such as in the electronics, ICT, petrochemicals, and natural gas industries.

It will also work to eliminate long-standing non-tariff barriers and address U.S. concerns over export controls on high-tech products and the illegal relabeling of low-cost goods, he said.

Domestically, Lai said the government will support industries most affected by the new tariffs, especially traditional and small and medium-sized enterprises (SMEs), accelerate industrial transformation, and leverage Taiwan's strengths in semiconductors and smart manufacturing to position the country as a leader in artificial intelligence applications.

Lai's video address was released after he met with a dozen representatives from traditional industries and SMEs, in his second day of talks with industry representatives in response to the new tariffs.

In response to Lai's address, Eric Chu (朱立倫), chairman of the main opposition Kuomintang (KMT), questioned whether the government had thoroughly assessed the situation before urging Taiwan's private sector to increase investments in the U.S.

Chu pointed out that chip giant Taiwan Semiconductor Manufacturing Co. (TSMC) had already committed to an additional US$100 billion investment in the U.S., and warned that further pressure from the government to increase this investment could put Taiwan at risk of losing its most valuable "silicon shield."

Also Sunday, the KMT held a news conference during which it criticized the ruling Democratic Progressive Party (DPP) over what it said was its slow response to Trump's tariffs.

KMT Taoyuan City Councilor Ling Tao (凌濤) said the Cabinet's NT$88 billion (US$2.65 billion) proposal, announced on Friday to support Taiwanese businesses facing significant impact from the tariff, is insufficient to help local companies.

Ling said the government should immediately appoint a special envoy to initiate talks with the U.S. and use TSMC's investment in the U.S. as a bargaining chip in tariff negotiations.

(By Christie Chen and Sean Lin)

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