Taiwan, which sells more to the US than it buys, now faces a 32 percent duty on its goods. The US tariffs do not include semiconductors, which serve as a massive part of Taiwan’s exports, per Reuters.
In a video shared by his office, Lai said Taiwan’s economy depends on trade and that the new tariffs could cause serious problems for the island, but he believes the damage can be reduced. "Tariff negotiations can start with 'zero tariffs' between Taiwan and the United States, with reference to the US-Canada-Mexico free trade agreement," Lai said.
He said Taiwan will not retaliate with its own tariffs and that local companies will keep investing in the US if it still makes sense for them. Taiwan’s TSMC, which makes chips for companies around the world, recently said it will spend $100 billion more in the US.
"In the future, in addition to TSMC's increased investment, other industries, such as electronics, information and communications, petrochemicals, and natural gas will be able to increase investment in the US and deepen Taiwan-US industrial cooperation," Lai said.
The government in Taiwan is also thinking about what big purchases they can make from the US, like farming goods, energy, and weapons. "All purchases will be actively pursued," Lai said. He added that Taiwan wants to fix non-tariff trade barriers too, which are rules or policies that can also affect trade fairness.
The US doesn’t have official ties with Taiwan, but it’s one of Taiwan’s top partners and helps supply its military. China continues to pressure Taiwan politically and militarily. China considers Taiwan as part of its own territory, though Taiwan is a self-governing territory. The US operates on a "one-China" policy, meaning that they officially consider both as one entity. China also just wrapped up military drills near the island before Trump’s tariff news.
Lai ended his message by saying that Taiwan has been through global crises before and made it out stronger. "Not only have we been able to overcome the difficulties, but we have also been able to turn crises into opportunities, transforming the Taiwanese economy into a new and more resilient one," he added.
