Taiwan's Premier Cho Jung-tai Vows Crackdown on "Origin Laundering" and Safeguards Economic Integrity

Protecting "Made in Taiwan" and Navigating Global Trade Challenges

In a firm stance to protect Taiwan's economic interests, Premier Cho Jung-tai (卓榮泰) has declared a resolute crackdown on "origin laundering," ensuring that products labeled "made in Taiwan" are genuinely produced within the nation. This initiative, announced following discussions with industry representatives in Kaohsiung, aims to uphold the integrity of Taiwanese manufacturing and shield against potential trade violations.

Premier Cho's commitment comes as Taiwan responds to the US government's recent announcement of "reciprocal" tariffs on its trading partners. Last week, discussions began with industry leaders across Taiwan to gather feedback and address concerns related to these tariffs, underscoring the government's proactive approach to the evolving global trade landscape.

The focus is not only on tariffs but also on combating "origin laundering," a deceptive practice where the country of origin of a product is misrepresented, often to circumvent tariffs or trade restrictions. "MIT [made in Taiwan] must be MIT," stated Cho Jung-tai, emphasizing the importance of maintaining a robust defense against such practices.

To combat this, the government will implement a three-tiered defense strategy: preventative measures, enhanced inspections, and strict penalties for offenders. This strategy aims to fortify Taiwan's economic security and foster greater trust and support from international partners amid the ongoing restructuring of the global trade order, Premier Cho highlighted.

Furthermore, Premier Cho has warned of the potential for Chinese products to be dumped at low prices in other markets, following the US decision to raise tariffs on Chinese imports. To safeguard the competitiveness of local industries and protect consumers, the government will initiate anti-dumping investigations.

Acknowledging Taiwan's leadership in advanced technology exports, Premier Cho emphasized the critical role of export controls in global economic security, stating Taiwan must do its best in export controls to claim its rights in negotiations with the US. On the issue of non-tariff barriers, the government will carefully review and discuss with the legislature to determine which barriers could be lifted, while also adhering to the principle of “protecting the people’s food safety and trading market order.”

In addition, the Cabinet has postponed by a week the release of details of a NT$88 billion (US$2.72 billion) support package aimed at mitigating the impact of higher US tariffs on Taiwan’s economy, pending further clarity on the US position.

Officials from Washington and Taipei have begun talks via video conferencing regarding the "reciprocal tariffs," which are set at 32 percent for Taiwan, higher than neighboring economies such as Japan (24 percent) and South Korea (25 percent).