Taipei: As a 32 percent U.S. tariff on Taiwanese goods looms, a former U.S. diplomat told CNA that Taiwan should clearly express to the United States that the "reciprocal tariff" is unfair and unjustified, noting that despite an imbalance, the Taiwan-U.S. trade relationship is "mutually beneficial."
According to Focus Taiwan, Kurt Tong, a managing partner at the Asia Group, a strategic advisory firm based in Washington D.C., stated that both the Taiwan government and Taiwan industry should make a clear and forceful case to the U.S. that 'reciprocal tariffs' are unfair, excessive, and unjustified. The "reciprocal tariffs" stem from an announcement made by U.S. President Donald Trump, which imposes a 32 percent import duty on exports from Taiwan starting April 9.
In an interview with CNA, Tong explained that the tariffs are based on U.S. calculations of both tariff and non-tariff barriers imposed by Taiwan on American exporters. However, he criticized the calculations as flawed and excessive, suggesting an agenda beyond reciprocity, such as forcing investment into the U.S. and boosting government revenue.
Riley Walters, a senior fellow at the Hudson Institute, echoed Tong's sentiments, describing the calculations behind the new U.S. tariffs as based on "bad math" and "quite unfair." He remarked that the Trump administration equates the trade deficit directly to tariffs and non-tariff barriers, which he argues is not entirely accurate.
Tong emphasized that despite Taiwan's trade surplus with the U.S., the trade relationship remains mutually beneficial, as U.S. companies benefit from both sales to Taiwan and imports from Taiwan. He advised Taiwan's government to seek negotiations with the Trump administration, although he acknowledged the complexity and difficulty of the process.
Walters predicted that tariff reductions for countries like Taiwan are unlikely in the immediate future but may occur "six months from now, a year from now," as the real costs of these tariffs become apparent in the U.S. economy.
Contrarily, Jeffrey Kuo, an economics lecturer at George Washington University, suggested the "reciprocal tariffs" are a short-term policy with more political symbolism than economic substance, aimed at fulfilling Trump's campaign promise to bring manufacturing back to the U.S. Kuo noted that the Trump administration might use the remaining window before the tariffs take effect to negotiate with other countries, potentially reducing tariffs after achieving certain goals.
If the tariffs proceed as scheduled, Kuo warned, it could mark the beginning of a new era of protectionist trade policies, posing challenges for export-driven economies like Taiwan.