TAIPEI (Taiwan News) — The Taipei-based think tank Chung-Hua Institution for Economic Research (CIER) said Monday that Taiwan should seek an exemption from US tariffs targeting the electronics supply chain.

CIER President Lien Hsien-ming (連賢明) said at a forum that Taiwan's government should push for a tariff exemption from the US for information and communications technology (ICT) products, per CNA. He emphasized the difficulty suppliers face in relocating production from Taiwan to the US.

Lien noted that ICT products account for 70% of Taiwan’s exports to the US. Taiwan’s trade surplus with the US reached NT$2.41 trillion (US$73.9 billion) last year, driven by a surge in US imports from Taiwan, according to CIER.

Automatic data processing equipment and integrated circuits were Taiwan’s top two exports to the US last year, per the International Trade Administration. The US is Taiwan’s seventh-largest market for IC exports.

When US President Donald Trump announced a 32% tariff on Taiwanese goods in early April, Lien criticized the US's calculation method as "simple and crude." He said it appeared based on Taiwan’s annual trade surplus divided by total US imports from Taiwan in 2024.

On April 11, Taiwan held its first round of trade negotiations with the US. President Lai Ching-te (賴清德) described the talks as "smooth," with another round expected soon.

Lien said he expects Trump to impose a 15–20% tariff on Taiwanese goods. He added that it would not be wise for Taiwan to take tough retaliatory action given the smaller size of its economy.

CIER estimated that Taiwan’s economic growth could slow to 1.66% this year. The Directorate General of Budget, Accounting and Statistics forecasted 3.14%, while the economy grew 4.59% last year.