Taipei: Taiwan has no plans to retaliate against U.S. President Donald Trump's 32 percent tariff on Taiwanese goods, President Lai Ching-te announced Sunday, as he sought to ease public fears over the potential economic fallout from Washington's latest trade measure.
According to Focus Taiwan, in a video address to the nation, Lai acknowledged the "significant impact" that the 32 percent tariff would have on Taiwan's economy, but urged the public not to panic, citing Taiwan's strong economic fundamentals. He noted that although 23.4 percent of Taiwan's exports went to the U.S. in 2024, over 75 percent were shipped to other markets. Among the goods exported to the U.S., competitive ICT products and electronic components made up 65.4 percent-a sign that Taiwan's economy remains highly resilient.
"Taiwan has no plans to take retaliatory tariff action in response to the United States' 'reciprocal tariffs.' Investments by Taiwanese companies in the U.S. will also proceed without any changes, as long as they align with our national interests," Lai said in the 8-minute video.
To mitigate the impact of the tariffs, Lai said his government has formed a negotiation team led by Vice Premier Cheng Li-chiun to launch formal talks with the United States. "The tariff negotiations can start with a goal of 'zero tariffs,' modeled after the USMCA (United States-Mexico-Canada Agreement)," Lai said.