Taipei: President Lai Ching-te announced that Taiwan has officially begun negotiations with the United States on reciprocal tariffs, describing the process as “smooth.” Speaking at a Rotary International conference in Taipei, Lai sought to reassure the public, emphasizing that while the new U.S. tariff policy presents challenges, Taiwan’s economy remains fundamentally resilient. Of Taiwan’s more than US$400 billion in annual exports, only 23.4 percent are directed to the U.S.
According to Focus Taiwan, Lai stated that Taiwan would not retaliate with tariffs and remains committed to close collaboration with the U.S., especially in enhancing Taiwan’s position in the global supply chain. He mentioned that the government has implemented several strategies to cushion the impact, including negotiating better tariff terms, supporting affected domestic industries, and accelerating long-term economic development plans.
To address the situation, Taiwan has formed a dedicated negotiation team and plans to increase its procurement of U.S. goods to help narrow the bilateral trade deficit, Lai explained. Efforts are also being made to deepen industrial and trade cooperation, remove longstanding nontariff barriers, and address U.S. concerns about export controls on high-tech goods.
U.S. President Donald Trump’s “reciprocal tariffs” on imports from dozens of countries, including a blanket 32 percent levy on most Taiwanese goods, were scheduled to take effect on Wednesday. However, Trump announced a 90-day pause on these new measures, with reduced 10 percent duties to be applied to all but China.
According to Taiwan’s Office of Trade Negotiations, representatives from Taiwan and the U.S. held their first meeting on tariffs via teleconference on Friday (U.S. time) and plans for further discussions are underway.