Taiwanese President William Lai Ching-te is pushing for zero tariffs and deeper trade cooperation with the United States in response to new tariffs announced by President Donald Trump. Trump’s move slapped a 32% tariff on nearly all Taiwanese exports except semiconductors, sparking sharp criticism from Taipei and setting the stage for major shifts in U.S.-Taiwan trade policy.
President Trump had earlier accused Taiwan of unfair trade practices, specifically in the semiconductor sector. While he threatened to target Taiwan’s chip exports, he backed off after Taiwan’s top chipmaker, TSMC, pledged to invest $100 billion into building five new factories in Arizona. Still, the latest round of tariffs—excluding only semiconductors—caught Taiwanese leaders off guard.
Taiwanese officials called the tariffs unreasonable, pointing to the growing U.S. demand for Taiwanese technology products and the economic partnership between the two nations. They noted that much of Taiwan’s trade imbalance with the U.S. stems from an increased production shift back to Taiwan due to Trump’s earlier tariffs on China. In 2024, Taiwan’s trade surplus with the U.S. hit $73.9 billion, placing it among the top seven trade deficits.
Instead of retaliating, President Lai proposed a comprehensive offer to Washington. He called for immediate talks on establishing a free trade agreement with zero tariffs, using the U.S.-Canada-Mexico model as a reference point. He also committed to removing trade barriers that hinder American exports and affirmed that Taiwanese companies would continue investing in the U.S., particularly in strategic sectors like electronics, petrochemicals, and natural gas.
Lai stressed that his administration would support affected industries at home but emphasized economic cooperation over conflict. He confirmed that cabinet-level discussions are already underway to increase purchases of U.S. goods across multiple sectors, including defense and energy.
The proposal drew criticism from Taiwan’s opposition party, the Kuomintang (KMT), which said the response was too soft and risked giving up Taiwan’s strategic advantage—its so-called “silicon shield.” They also warned that companies supplying the semiconductor sector may suffer under the new tariffs, even if chips themselves are spared.
Industry leaders are urging the government to put together a robust aid package for businesses affected by the tariffs, fearing long-term disruption to Taiwan’s tech-heavy economy.
