Taiwan's President Charts Bold Course for US Trade Amidst Global Shifts

President Lai Ching-te outlines a strategic plan for bolstering trade ties with the United States, addressing tariffs and emphasizing regional security.

Taipei, April 10 – Responding to U.S. trade measures impacting global markets, Taiwan is poised to significantly strengthen its economic partnership with the United States. President Lai Ching-te (賴清德) unveiled a comprehensive strategy in an opinion piece, highlighting a proactive approach to navigate the evolving trade landscape.

The core of the plan, detailed in the piece titled "Taiwan has a roadmap for deeper U.S. trade ties," focuses on four key areas.

Following the implementation of "reciprocal" tariffs, President Trump announced a 90-day pause while maintaining a baseline 10 percent tariff for most countries, with a steeper 125 percent tariff increase for China. In his article published by Bloomberg, President Lai outlined Taiwan’s strategy.

Firstly, Taiwan will engage in trade negotiations with the U.S. concerning tariffs. Recognizing its already low average nominal tariff rate of 6%, Taiwan is prepared to further reduce these rates to zero on a reciprocal basis. The aim is to encourage greater trade and investment flows between the two economies.

Secondly, Taiwan will actively work to narrow its trade imbalance by "rapidly" increasing its procurement of energy, agricultural products, and other industrial goods from the U.S. President Lai emphasized that Taiwan will pursue additional arms procurement to enhance its self-defense capabilities against threats, which are not necessarily reflected in trade balances.

Thirdly, Taiwan will establish a dedicated "U.S. Investment Team," a cross-agency initiative, to facilitate increased investments in the U.S. where Taiwanese companies like TSMC currently support 400,000 jobs across all 50 states.

Lastly, President Lai affirmed Taiwan's commitment to eliminating barriers to free trade, addressing U.S. concerns regarding export controls and the transshipment of low-cost goods through Taiwan.

"These steps form the basis of a comprehensive roadmap for how Taiwan will navigate the shifting trade landscape, transforming challenges in the Taiwan-US economic relationship into new opportunities for growth, resilience and strategic alignment," President Lai stated.

He further highlighted the importance of strong trade ties in the current geopolitical climate, stating, "At a time of heightened global uncertainty, underpinned by growing Chinese assertiveness, closer trade ties are more than sound economics; they are a critical pillar of regional security."

Following the publication, the Trump administration said that most nations, including Taiwan, have started to negotiate trade measures with the U.S.

On Wednesday, President Lai, who is also chairperson of the Democratic Progressive Party (DPP), emphasized the importance of collaboration with the Global North countries and democracies, including the U.S., to enhance global economic outreach and lessen China's economic influence.