The Taiwanese president, William Lai Ching-Te, proposes zero tariffs on Sunday, lower commercial barriers and more investments in the United States instead of retaliation against the increases in the rate of President Donald Trump’s fee.
President Trump’s fee announcement on Wednesday including 32 percent in all semiconductors of Expepto of Taiwanese expectations, which are the most famous and economically significant product of Taiwan.
Trump had threatened In March, it will include Taiwanese semiconductors in its list of rates, because he said that Taiwan “stole” the United States industry with unfair commercial practices.
“They stole it. They touched us, and I don’t blame them. I give them credit. I blame people who were sitting in this seat because they allowed them to happen,” Trump said in March.
The president’s position on Taiwanese semiconductors softened a little after the largest chips manufacturer on the island, TSMC, engaged Spend $ 100 billion on five new semiconductor factories in Arizona in the next four years.
The officials in Taipei were stunned When Trump slapped the 32 percent rates in everything, except the semiconductors last week. The spokeswoman of the Taiwan Cabinet Michelle Lee described the “deeply unfortunate” and “very unfortunate” rates.
“The increase in American demand for TAIWAN ICT products reflects Taiwan’s important contribution to the national economy and national security, however, Taiwan is now affected with high tariffs. This decision has no precision and the commercial and economic situation.
Lee pointed out the demand for rapidly growing semiconductors such as the reason for Taiwan’s commercial imbalance with the United States, instead of unfair commercial practices. He also pointed out that Trump’s commercial war with China in his first term led many Taiwanese companies to transfer their factories from China to home. This caused production on the Taiwanese soil and the export volume to increase considerably.
Taiwan’s commercial surplus with the United States grew at $ 73.9 billion in 2024, giving the seventh commercial deficit of the world’s highest. Commercial deficits were an important factor in the formula used by the Trump administration to determine the increases in the rate.
“The methodology, basic scientist and commercial justification behind these rates are still uncles,” said Lee.
President Lai promised a response from his administration “as soon as possible,” including “the strongest possible support for the industry” in the name of “economic stability.”
That answer came on Sunday with a price Establishing a free trade relationship with the United States and a promise that Taiwan would not take any retaliation action.
“The tariff negotiations can begin with ‘zero tariffs’ between Taiwan and the United States, with reference to the US-Cano-México Free Trade Agreement,” said Lai. Hello, it also promised to eliminate non -tariff barriers for US exports.
“Taiwan has no plans to take tariff measures in response to the United States” “Reciprocal rates.” The investments of Taiwanese companies in the United States will also process without any change, provided they align with our national interests, “he said.
“In the future, in addition to the increase in TSMC investment, other industries, such as electronics, information and communications, petrochemicals and natural gas, Bey to increase investment in the US. UU. And deepen the industrial cooperation of Taiwan-United States.”
Lai said his cabinet is already deliberating what will be the first new purchases of the United States. He said that each of those ideas would be “actively persecuted.”
Lai touched their constituents to remember how “they have been able to convert crises into opportunities, transforming the Taiwanese economy into a new and more resistant.” They suggested another crisis of this type, and the opportunity was at hand.
The Kuomintang opposition party (KMT) criticized Lai for being too anxious to accommodate President Trump, and said his concessions risked to give Taiwan’s “silicon shield”.
Kmt said that Lai’s response to Trump was too weak and slow, and that he was not offering enough support to the Taiwanese companies that could the great losses of the rates.
Industry analysts warned That is fair, although the semiconductors were excluded from the Trump Rate list, the other rates could have an “indirect effect” by hitting other companies that supply and serve chip manufacturers with higher costs.
“The government must find a supplementary package to help companies maintain the next four years,” said Jason Hsu, a senior member of the Hudson Institute and former KMT manufacturer.
