The U.S. government has recently imposed tariffs of up to 32% on multiple trading partners, including Taiwan, under the pretext of "reciprocal tariffs," which has sparked high domestic attention. President Lai Qingde responded to this matter through a video address today (6th), proposing five major response strategies, emphasizing that the government will work with the private sector to stabilize the economic foundation and turn crisis into opportunity. He also called for solidarity across party lines to support the Executive Yuan's measures and work together to open broader economic pathways for Taiwan.
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ToggleU.S. Heavy Tariff Increase, Taiwan Inevitably Impacted
Lai pointed out that the United States has raised tariffs on many countries worldwide under the name of "reciprocity," and Taiwan is no exception. The additional 32% import tax will pose a major challenge to Taiwan, an export-oriented economy. As countries continue to respond and even implement retaliatory measures, the international economic and trade situation may undergo dramatic changes.
"As an economy highly dependent on exports, Taiwan is treading carefully in this impact and must proceed with caution," the president reminded citizens to remain alert to the situation while emphasizing there is no need to panic.
Taiwan-U.S. Trade Overview: ICT Products Sustain Half the Sky
Although Taiwan's exports to the U.S. account for 23.4%, the president stated that approximately 65.4% are information and communication technology and electronic components, which are highly competitive, reflecting Taiwan's economic resilience. He believes that if the government and private sector work together, there is still an opportunity to mitigate this impact.
He further clarified that Taiwan does not plan to implement retaliatory tariffs against the U.S. or change its existing investment direction in the U.S., but will actively seek negotiation opportunities to explain its importance in the U.S. economic system.
Five Response Strategies Emerge, Government Prepares Comprehensively
1. Negotiate for Tariff Improvement, High-Level Group to Take Action
The government has formed a negotiation team led by Vice President Zheng Lijun, including representatives from the National Security Council, Economic and Trade Negotiation Office, and academia, aiming to work towards "zero tariffs" based on the framework of the U.S.-Mexico-Canada Free Trade Agreement.
Simultaneously, by expanding U.S. purchases to reduce trade deficits, including agricultural products, energy, and military equipment, the government has presented a comprehensive list of actions. Taiwan's accumulated investment in the U.S. already exceeds $100 billion, creating approximately 400,000 job opportunities. In the future, it will promote the "Taiwan Invest in U.S. Team" and "U.S. Invest in Taiwan Team" for bilateral integration.
Additionally, addressing non-tariff trade barriers, high-tech export issues, and rules of origin concerns are key focus areas in this negotiation.
2. Launch Industry Support Plan Small and Medium Enterprises to Benefit First
For traditional industries and small and medium-sized enterprises affected by new tariffs, the government will launch an "Industry Support Plan". The Executive Yuan has recently announced a comprehensive plan covering nine aspects and twenty measures to provide timely and precise assistance, helping industries upgrade, transform, and enhance competitiveness.
3. Introduce Medium and Long-term Economic Development Roadmap Build AI Smart Island
Facing global supply chain restructuring and emerging technology trends, the government is simultaneously planning medium and long-term economic strategies. Besides strengthening cooperation with friendly countries and expanding markets, Taiwan will leverage its advantages in semiconductors, IC design, and information and communication technologies to build an "Artificial Intelligence Island", comprehensively developing smart manufacturing, healthcare, next-generation communications, and other application industries, driving Taiwan towards a new era of intelligent and sustainable economy.
4. Shape "Taiwan + 1" New Economic Layout Strengthen Cooperation with the US
President Lai proposed adjusting the national economic strategy, upgrading "Rooted in Taiwan, Globally Deployed, Marketing Worldwide" to "Rooted in Taiwan, Globally Deployed, Strengthening US Cooperation, Marketing Worldwide". By leveraging supply chain shift opportunities, assisting Taiwanese businesses in overseas deployment adjustments, strengthening industrial chain linkage with the US, and deepening Taiwan-US cooperation.
Domestically, the government will continue to improve the investment environment, address pain points in water, electricity, land, and human resources, and encourage enterprises to increase investment and remain in Taiwan.
5. Launch "Industry Listening Tour" Directly Addressing Business Concerns
Facing industry concerns and challenges, the President and Executive Yuan team will launch an "Industry Listening Tour", delving into various regions and industries to understand real needs and promptly adjust policy content to ensure targeted response measures.
Turning Crisis into Opportunity, President Calls for Bipartisan Support
President Lai emphasized that Taiwan has overcome energy crises, Asian financial storms, global financial tsunamis, and pandemic challenges, always turning crises into opportunities through government and private sector collaboration. He calls on all political parties to support the Executive Yuan's policies and jointly build a more resilient and competitive Taiwanese economy.
"Let's cheer on together!" Lai Ching-te earnestly called out to the people, hoping this challenge is not only the beginning of difficulties but also a new opportunity for Taiwan's economic upgrade.
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