Taipei Responds to Trump’s Tariffs: “Highly Unreasonable” and “Unfair”
Government Plans to Initiate Serious Negotiations with Washington
Taipei has strongly condemned US President Donald Trump’s latest tariffs, calling them “highly unreasonable” and “unfair”. The government has announced plans to initiate serious negotiations with Washington to address the issue.
According to Taipei, Trump’s tariffs on Taiwanese imports were announced overnight and include a hefty 32 percent tax on Taiwanese goods. The Taiwanese cabinet spokeswoman, Michelle Lee, described the decision as “unfair” and regretted it.
Taiwan’s Trade Surplus with the US
Taiwan’s trade surplus with the US is the seventh highest of any country, reaching $73.9 billion in 2024. Around 60 percent of Taiwan’s exports to the US are information and communications technology products (ICT), which includes semiconductor chips.
Lee explained that the surplus reflected soaring US demand for Taiwan’s semiconductors and other tech products, driven by tariffs and export controls targeting China imposed during Trump’s first term.
Unfair Treatment of Taiwan
Lee emphasized that the proposed tariff does not accurately reflect the actual state of Taiwan-US trade relations and is unfair to Taiwan. “The surge in US demand for Taiwan’s ICT products reflects Taiwan’s significant contribution to the US economy and national security, yet Taiwan is now being hit with high tariffs,” she said.
Impact on Semiconductor Industry
Semiconductor chips, a sector that Taiwan dominates and has been a source of friction between Washington and Taipei, were excluded from the levies. However, analysts warned that tariffs on components would have a knock-on effect for the critical chip industry that is the lifeblood of the global economy.
Taiwan’s Countermeasures
Taiwan had drawn up plans to help local industries hit by possible US tariffs, Minister of Economic Affairs Kuo Jyh-huei said Tuesday, ahead of Trump’s announcement. “Our countermeasures have been assessed and analysed, for example, how we would respond to a 10 percent or how we would respond to a 25 percent tariff,” Kuo said.
Failing to Shield Taiwan from Tariffs
There had been hopes that Taiwan chipmaking titan TSMC’s plan to invest $100 billion in the US would shield the island from Trump’s tariffs. However, it seems that the plan may not be enough to protect Taiwan from the tariffs.
Taiwan’s Pledges to the US
Taiwan has also pledged to increase investment in the US, buy liquefied natural gas from the US state of Alaska, and raise its defence spending to more than three percent of GDP. However, it remains to be seen whether these pledges will be enough to mitigate the impact of the tariffs.
Conclusion
Taipei’s strong response to Trump’s tariffs highlights the tensions between the two countries over trade and technology. While Taiwan has pledged to increase investment in the US and raise its defence spending, the tariffs are likely to have a significant impact on the island’s economy. It remains to be seen whether serious negotiations between the two countries will be able to address the issue.
FAQs
Q: Why did Taiwan condemn Trump’s tariffs as “highly unreasonable” and “unfair”?
A: Taiwan believes that the tariffs do not accurately reflect the actual state of Taiwan-US trade relations and are unfair to Taiwan.
Q: What is Taiwan’s trade surplus with the US?
A: Taiwan’s trade surplus with the US is the seventh highest of any country, reaching $73.9 billion in 2024.
Q: What is the impact of the tariffs on the semiconductor industry?
A: Analysts warn that tariffs on components would have a knock-on effect for the critical chip industry that is the lifeblood of the global economy.
Q: What are Taiwan’s countermeasures to address the tariffs?
A: Taiwan has drawn up plans to help local industries hit by possible US tariffs, including assessing and analysing how it would respond to different tariff levels.