Taiwan Braces for US Tariffs: President Lai Orders Economic Safeguards

President Lai Ching-te Directs Premier Cho Jung-tai to Fortify Taiwan's Economy Amidst Looming US Trade Measures

Taipei, March 31 - President Lai Ching-te (賴清德) has tasked Premier Cho Jung-tai (卓榮泰) with implementing measures to ensure Taiwan's economic stability as the United States prepares to impose "reciprocal tariffs."

According to a statement released Monday morning by Presidential Office spokesperson Karen Kuo (郭雅慧), President Lai received a briefing from Premier Cho and members of the government's "Taiwan-U.S. trade work group" on Sunday evening.

The report detailed potential U.S. tariff levels, economic impact modeling, and various response strategies, Kuo stated.

Lai instructed Cho’s government and his national security team to continue their efforts to "safeguard national interests and economic growth and development." He also emphasized the need to provide essential support to industries potentially affected by the tariffs, Kuo added.

Simultaneously, a separate statement issued Monday morning by the Executive Yuan’s Office of Trade Negotiations confirmed ongoing preparations for the tariffs. They have been evaluating the potential impact and formulating "multifaceted response plans" for over two months.

The looming tariffs stem from U.S. President Donald Trump's pledge to impose "reciprocal tariffs" on "all countries," as part of an initiative to rebalance global trade and stimulate U.S. manufacturing.

Taiwan is under particular scrutiny. Its US$73.9 billion trade deficit with the U.S. in 2024 ranked as the sixth-largest globally, following only China, Mexico, Vietnam, Ireland and Germany, prompting speculation about potentially high tariffs.

In response, Taiwan has taken steps to reduce its trade deficit. These include signing a letter of intent to purchase liquid natural gas from Alaska and compiling a list of potential goods for purchase from the U.S., as reported by government officials.