Taiwan Navigates New U.S. Tariff Landscape: President Lai Announces Smooth Negotiations

President Lai Ching-te Highlights Resilience and Collaboration in the Face of Evolving U.S. Trade Policy

Taipei, April 12 – President Lai Ching-te (賴清德) announced on Saturday that Taiwan and the United States have commenced negotiations regarding reciprocal tariffs, characterizing the process as "smooth."

Speaking at a Rotary International conference in Taipei, President Lai sought to allay public concerns, stating that while the new U.S. tariff policy presents a challenge, there is no need for alarm, as Taiwan's economic fundamentals remain robust.

He noted that approximately 23.4 percent of Taiwan's annual exports, valued at over US$400 billion, are destined for the U.S. market.

President Lai emphasized that Taiwan will not resort to retaliatory tariffs and is committed to close collaboration with the U.S., particularly in strengthening Taiwan's role within the global supply chain.

He further detailed the government's implementation of response strategies to mitigate any negative impacts, including efforts to improve tariff terms through negotiation, provide support for impacted domestic industries, and accelerate long-term economic development initiatives.

In addition to establishing a dedicated negotiation team, Taiwan intends to increase its procurement of U.S. goods to help reduce the bilateral trade deficit, according to President Lai.

Efforts are also underway to deepen industrial and trade cooperation, eliminate long-standing nontariff barriers, and address U.S. concerns related to export controls on high-tech goods, he added.

The planned "reciprocal tariffs" from U.S. President Donald Trump on imports from numerous countries, including a general 32 percent levy on most Taiwanese goods, were initially scheduled to take effect on Wednesday.

However, on Wednesday afternoon (U.S. time), President Trump announced a 90-day delay, with reduced duties of 10 percent slated to be applied, with the exception of goods from China.

According to Taiwan's Office of Trade Negotiations, representatives from Taiwan and the U.S. held their initial tariff negotiations via teleconference on Friday (U.S. time) and are planning further discussions in the near future.