TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) said Sunday that Taiwan has no plans to retaliate against US President Donald Trump's 32% tariff on Taiwanese products and included a five-point strategy to address the new measures.
In a video address, Lai said the tariff hike would undoubtedly impact Taiwan. As global trade undergoes tremendous changes, Taiwan, as an export-oriented economy, will face tough challenges ahead, Lai said.
The president stressed the need for a cautious and strategic approach to turn risks into opportunities. He thanked all sectors for their valuable suggestions, which he said the government takes seriously and will use as a reference in decision-making.
Lai said Taiwan’s exports to the US last year totaled NT$3.7 trillion (US$111.4 billion), accounting for 23.4% of the nation’s total exports. However, the president pointed out that over 75% of Taiwanese exports go to markets outside the US.
Competitive ICT products and electronic components made up 65.4% of the goods exported to the US, said Lai. “This shows that Taiwan’s economy is still quite resilient,” the president added.
He emphasized, “As long as the response strategies are appropriate, and there is cooperation between the public and private sectors, the impact can be minimized, so there is no need for panic."
The president reiterated, “In the face of US ‘reciprocal tariffs,’ Taiwan has no plans to impose retaliatory tariffs." He stressed that investments by Taiwanese companies in the US will remain unchanged, as long as they align with Taiwan's national interests.
He said the US needs to understand Taiwan’s contributions to its economic development. Lai said Taiwan must stay informed of global economic trends, strengthen industrial cooperation between Taiwan and the US, and enhance the position of Taiwanese industries within the global supply chain.
Lai listed five strategies to respond to the new tariffs to sustain Taiwan's economic growth:
1. Strive to improve tariff parity through negotiations
a. Start negotiations on a “zero tariffs” framework similar to USMCA
b. Expand purchases from the US to reduce trade deficit
c. Expand investment in the US
d. Eliminate non-tariff trade barriers
e. Resolve US concerns about export controls on high-tech products and illegal operations involving dumping of goods, especially country-of-origin dumping
2. Propose an industrial plan to support domestic industries impacted
3. Propose a medium- and long-term economic development plan
4. Create a new “Taiwan plus US” layout
5. Survey industries for needs
