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Taiwanese President Lai Ching-te on Sunday proposed eliminating tariffs as a foundation for trade negotiations with the United States and pledged to dismantle trade barriers instead of enforcing reciprocal tariffs, highlighting plans for increased U.S. investment by Taiwanese companies.
The move comes after President Donald Trump announced sweeping import tariffs on Wednesday, targeting numerous trade partners, including Taiwan. The island, which maintains a significant trade surplus with the U.S., now faces a 32 percent duty on its exports.
“To address the reciprocal tariffs by the US, Taiwan has no plans to adopt retaliatory tariffs. There will be no change in corporate investment commitments to the US, as long as they are consistent with national interests,” Taiwan’s president said.
The Taiwanese leader also addressed current and future investments in America, expecting to increase its already strong emphasis.
“Taiwan’s cumulative investment in the US already exceeds US$100 billion, creating approximately 400,000 jobs. In the future, in addition to increased investment in the US by Taiwan Semiconductor Manufacturing Company, other industries such as electronics, ICT, petrochemicals, and natural gas can all increase their US investments, deepening Taiwan-US industry cooperation,” he stated.
Taiwanese stocks have dropped more than 9 percent, hitting a one-year low, with shares of leading chipmaker TSMC falling nearly 10 percent, according to CNBC. Despite lacking formal diplomatic ties with Taiwan, the U.S. remains the island’s most critical international supporter, even as Beijing continues to claim it as part of its territory.
Trump spoke out again about the effectiveness of tariffs in a Sunday Truth Social post.
“We have massive Financial Deficits with China, the European Union, and many others. The only way this problem can be cured is with TARIFFS, which are now bringing Tens of Billions of Dollars into the U.S.A. They are already in effect, and a beautiful thing to behold,” Trump wrote.
“The Surplus with these Countries has grown during the ‘Presidency’ of Sleepy Joe Biden. We are going to reverse it, and reverse it QUICKLY. Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!” he continued.