Taipei [Taiwan]: Taiwan has announced that it will not retaliate against the 32% tariff imposed by US President Donald Trump on Taiwanese exports, President Lai Ching-te confirmed on Sunday, as per a report by Focus Taiwan.
Acknowledging the potential economic impact, President Lai reassured citizens that Taiwan’s robust economic fundamentals and diversified trade relationships would cushion the effects.
“Taiwan has no plans to take retaliatory tariff action in response to the United States’ reciprocal tariffs,” Lai said in a public address. “Investments by Taiwanese companies in the US will also proceed without any changes, as long as they align with our national interests.”
In 2024, 23.4% of Taiwan’s exports were directed to the US, with 65.4% consisting of competitive ICT products and electronic components, Lai noted. He emphasized that over 75% of Taiwan’s exports are sent to other global markets, highlighting economic resilience.
To address the situation diplomatically, President Lai revealed the formation of a special negotiation team, led by Vice Premier Cheng Li-chiun, to begin dialogue with Washington.
“The tariff negotiations can start with a goal of ‘zero tariffs,’ modeled after the USMCA (United States-Mexico-Canada Agreement),” Lai proposed.
On the domestic front, Lai pledged government support for industries most affected, especially traditional sectors and SMEs, while accelerating industrial transformation. He highlighted plans to harness Taiwan’s strengths in semiconductors and smart manufacturing to become a global AI innovation hub.
This announcement comes in the wake of Trump’s April 2 declaration of reciprocal tariffs on major trading nations, aiming to mirror the import duties those countries impose on American goods. Taiwan was one of the countries hit with a 32% tariff starting April 9, alongside other affected nations such as China (34%), Vietnam (46%), India (26%), and the EU (20%).