Taiwan Offer Zero Tariffs To U.S.: In a bold move aimed at preserving Taiwan’s critical trade relationship with the United States, President Lai Ching-te announced on Sunday that Taiwan offers zero tariffs to the U.S., proposing this as a framework for future negotiations amid rising global protectionism. This statement comes just days after former U.S. President Donald Trump announced sweeping new tariffs on imports, including a 32% duty on Taiwanese products.
Taiwan Offer Zero Tariffs U.S. to Counter Trade Barriers
Speaking in a video message after a meeting with executives from Taiwan’s small and medium-sized enterprises, Lai made it clear that Taiwan will not engage in retaliatory tariffs, despite facing significant duties under Trump’s new policy. He emphasized the island’s heavy reliance on global trade and outlined a strategic, cooperative approach to soften the blow.
“Tariff negotiations can start with ‘zero tariffs’ between Taiwan and the United States, with reference to the U.S.-Canada-Mexico free trade agreement,” Lai stated.
TSMC Leads $100 Billion Investment Surge into U.S.
One of the strongest elements supporting Taiwan’s trade position is its technology sector, particularly semiconductor giant TSMC (Taiwan Semiconductor Manufacturing Company). Last month, TSMC announced an additional $100 billion investment in U.S.-based operations.
This investment aligns with Lai’s vision to deepen Taiwan-U.S. industrial cooperation. Other industries expected to follow suit include electronics, petrochemicals, and natural gas, which will play a vital role in strengthening bilateral ties.
Taiwan Offer Zero Tariffs U.S.: No Retaliation, Only Resolution
Lai reiterated that Taiwan has no plans to retaliate with tariffs, viewing cooperation as a better alternative. He stressed that Taiwanese investments in the United States would continue, as long as they serve the island’s strategic and economic interests.
“We will not retaliate. Instead, we choose to resolve the trade issues through fair dialogue and practical investment,” Lai explained.
Non-Tariff Trade Barriers Targeted for Elimination
Another key initiative in Lai’s proposal is Taiwan’s commitment to eliminate longstanding non-tariff trade barriers, which often complicate U.S. trade policy assessments. Lai expressed confidence that removing these barriers will lead to smoother trade negotiations and a more balanced economic partnership.
By addressing regulatory and bureaucratic obstacles, Taiwan hopes to convince Washington of its commitment to fair and transparent trade practices.
Taiwan’s Cabinet Plans Massive U.S. Purchases
To further strengthen ties and show goodwill, Taiwan’s cabinet is currently evaluating large-scale purchases of U.S. agricultural, industrial, and energy products. Lai revealed that the island’s defense ministry has also finalized new weapons procurement plans from the U.S., reinforcing the vital strategic alliance.
“All purchases will be actively pursued,” said Lai, emphasizing urgency and cooperation.
U.S.-Taiwan Ties Strengthened Despite Diplomatic Limits
Although the United States and Taiwan do not share formal diplomatic relations, Washington remains Taipei’s top international backer, especially in military and technological arenas. This has become even more crucial as Taiwan continues to face increasing pressure from China, which claims the island as its own.
Just before Trump’s tariff announcement, China concluded another round of military drills near Taiwan, a move widely interpreted as a show of force. Lai’s administration appears determined not to let trade tensions with the U.S. weaken Taiwan’s geopolitical posture.
Taiwan Offer Zero Tariffs U.S.: A Strategic Gamble
President Lai’s zero-tariff offer to the U.S. is a calculated gamble, positioning Taiwan as a cooperative and stable partner in a volatile global economy. His administration is banking on goodwill, investment, and mutual benefit to navigate the storm unleashed by Trump’s protectionist measures.
While semiconductors—Taiwan’s largest export—are exempt from Trump’s tariffs, the broader impact on other sectors could still disrupt the economy. Lai acknowledged this risk but expressed optimism that Taiwan can weather the storm.
“We have faced global crises before and emerged stronger. We can do it again,” Lai said, citing Taiwan’s economic resilience.
