US Tariffs Loom: Taiwan plans countermeasures amid trade surplus
Taiwan is preparing countermeasures in response to potential US tariffs on its trade surplus, emphasizing that the surplus results from high demand for Taiwanese technology. President Lai Ching-te held a high-level meeting to discuss strategies and mitigate economic impacts, as the US targets countries with significant trade surpluses.
Taipei [Taiwan], April 1 (ANI): According to Taiwan News, Taiwan is developing contingency plans in case the United States enforces 'reciprocal tariffs.' Officials stress that the trade surplus is due to high demand for Taiwanese technology rather than unfair trade practices.
On Sunday night, Taiwan President Lai Ching-te held a high-level meeting with senior government officials to deliberate on Taiwan's strategy before the anticipated tariff announcement on Wednesday.
During the meeting, Premier Cho Jung-tai presented a detailed report to Lai and the Taiwan-US trade working group, outlining the potential economic impact of different tariff levels.
According to a statement from the Presidential Office, Lai instructed government agencies to take necessary steps to support industries that could be affected by the tariffs and to explore measures that would mitigate economic disruptions, reported Taiwan News.
The Trump administration has announced its intent to impose tariffs on the 15 countries with the largest trade surpluses with the US, a move aimed at addressing what it views as trade imbalances. Taiwan, which currently holds the sixth-largest surplus, follows China, Mexico, Vietnam, Ireland, and Germany on the list. Given Taiwan's position, officials anticipate it will be among the nations targeted by the policy.
The Executive Yuan's Office of Trade Negotiations has been actively preparing for this development over the past two months and has drafted a set of response measures to address any potential fallout.
Meanwhile, Taiwan has taken proactive steps to narrow its trade surplus with the US. These include signing a letter of intent to purchase liquefied natural gas from Alaska and identifying additional American goods for import to balance trade flows.
Officials have reiterated that Taiwan's growing trade surplus is a result of surging US demand for Taiwanese semiconductors and other technology products. The Central Bank noted, "It reflects the structural problem of the sharp increase in US demand for Taiwan's technological products and the expansion of our trade surplus with the United States," Taiwan News reported.
Last year, Taiwan's trade surplus with the US surged 83 per cent, reaching a record NTD 3.69 trillion (USD 111.4 billion), with semiconductor exports being a key driver. (ANI)