President Lai Outlines Strategy in Response to U.S. Tariffs
Taiwan will rapidly expand procurement of U.S. goods and arms and remove barriers to free trade, President Lai Ching-te wrote in a Bloomberg opinion piece published on April 9 (U.S. time), in response to U.S. President Donald Trump’s sweeping tariff measures that have roiled global markets.
In the article titled “Taiwan Has a Roadmap for Deeper U.S. Trade Ties,” Lai outlined four core principles to guide Taiwan’s response to the new U.S. tariffs.
Just hours after the “reciprocal tariffs” took effect on April 9, Trump announced a 90-day pause, while maintaining a baseline 10-percent tariff on most countries, effective immediately. China was the exception, facing a new 125-percent tariff.
Lai stated that, like other nations, Taiwan would enter trade negotiations with the U.S. regarding the tariffs.
First, Taiwan seeks to restart trade negotiations “with a common objective of reducing all tariffs between Taiwan and the US,” he wrote. “While Taiwan already maintains low tariffs, with an average nominal rate of 6%, we are willing to further cut this rate to zero on the basis of reciprocity with the US,” in an effort to encourage greater bilateral trade and investment flows.
Second, Taiwan will “rapidly expand procurement of American goods,” including “energy, agriculture and other industrial goods,” to help narrow the trade imbalance. Lai also noted that Taiwan would also “pursue additional arms procurements,” which are vital for defending against Chinese threats but are not reflected in trade balance figures.
Third, Taiwan will establish a cross-agency “U.S. Investment Team” to promote greater Taiwanese investments in the United States. Lai noted that investments by Taiwanese firms, including Taiwan Semiconductor Manufacturing Co. (TSMC), currently support 400,000 jobs across all 50 U.S. states.
Fourth, Taiwan is “committed to removing non-tariff trade barriers,” Lai said, adding that his administration would “address U.S. concerns over export controls and improper 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,” he wrote.
“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,” Lai added.
Sources:
[1] Bloomberg
[2] Taipei Times
U.S. Senate Confirms “China Hawk” Colby as Defense Policy Chief
On April 8, the U.S. Senate confirmed Elbridge Colby as Undersecretary of Defense for Policy in a 54–45 vote. A defense strategist and noted China hawk, Colby stated last year that a Chinese invasion of Taiwan would “plausibly and gravely” threaten the United States.
He previously served as Deputy Assistant Secretary of Defense for Strategy and Force Development during President Donald Trump’s first term.
Colby is known for advocating that the U.S. military prioritize strategic competition with China and shift its focus away from the Middle East and Europe.
On March 4, during his confirmation hearing before the U.S. Senate Committee on Armed Services, Colby warned that “Taiwan’s fall would be a disaster for American interests,” referring to a potential invasion by China.
He also criticized Taiwan’s current defense spending as inadequate in the face of growing threats. “They should be more like 10 percent [of GDP], or at least something in that ballpark, really focused on their defense,” he said, emphasizing that the military balance vis-à-vis China has “deteriorated dramatically” from Taiwan’s perspective.
Colby further reiterated his view that the United States’ primary goal should be “denying China regional hegemony,” and argued that U.S. military power must be overwhelmingly focused on countering China.
On March 12, Taiwan’s Premier Cho Jung-tai responded to Colby’s remarks, stating that the Taiwanese government did “not have the capacity” to allocate 10 percent of the nation’s gross domestic product (GDP) annually to national defense.
Earlier, in February, President Lai Ching-te pledged to propose a special budget to raise this year’s military spending to 3 percent of GDP, aiming to demonstrate Taiwan’s commitment to its self-defense.
Sources:
[1] Focus Taiwan
[2] Taipei Times
Taiwan Among First Countries for U.S. Tariff Talks: President Lai
Taiwan is included in the first group of countries for tariff negotiations with the United States, President Lai Ching-te said on April 11, as he seeks to shield Taiwanese exporters from a 32-percent U.S. import tariff.
In Washington, U.S. Trade Representative Jamieson Greer said during a Fox News breakfast show on April 11 that he would speak with his Taiwanese counterpart later that day regarding the high tariffs announced by President Donald Trump the previous week.
Trump’s “reciprocal tariffs” on imports from dozens of countries — including a blanket 32-percent levy on most Taiwanese goods — were set to take effect on April 9. However, on the afternoon of April 9, Trump announced a 90-day pause on the new measures, replacing them with a reduced 10-percent baseline tariff for all countries except China, which would face a 125-percent duty.
“We want everyone to know that Taiwan is on the first negotiating list of the U.S. government,” President Lai said during an April 11 meeting with representatives from the machinery industry.
Lai called for unity across both the public and private sectors, as well as between the ruling and opposition parties, in response to the potential impact of U.S. tariffs. With collective efforts, he said, Taiwan could overcome the challenge and “turn crisis into opportunities.”
On April 10, Taiwan’s Premier Cho Jung-tai also stated that Taiwan would be ready for “direct talks” with Washington.
At a news conference in Taipei, Cabinet spokesperson Michelle Lee quoted Cho as saying the Taiwanese government would “seize the time and opportunity to engage in direct and effective negotiations with the U.S.”
According to the Cabinet, Taiwan’s negotiation team is led by Vice Premier Cheng Li-chiun and includes members from the Office of Trade Negotiations, as well as national security and foreign affairs teams.
