Taiwan eyes zero tariffs with US, pledges more investment

On Sunday, Taiwanese President Lai Ching-te pledged to dismantle trade obstacles rather than enact reciprocal measures, offering zero tariffs as the starting point for negotiations with the United States.

Additionally, Ching-te pledged that Taiwanese businesses will increase their US investments.

Keep in mind that President Donald Trump declared universal import tariffs on Wednesday, imposing significantly higher taxes on dozens of trading partners, including Taiwan, which has a significant trade imbalance with the US and whose goods are subject to a 32% charge.

However, semiconductors, a significant export from Taiwan, are exempt from US tariffs, according to DoroTV.

After meeting with executives from small and medium-sized businesses at his home, the president of Taiwan stated in a video message sent by his office that the economy would unavoidably struggle to cope with the tariffs due to Taiwan's reliance on trade.

"I hope the impact can be minimized," he said.

"With reference to the U.S.-Canada-Mexico free trade agreement, tariff negotiations can begin with 'zero tariffs' between Taiwan and the United States," Lai stated.

He asserts that Taiwan has no intention of retaliating with tariffs and that, so long as it serves Taiwan's interests, Taiwanese enterprises will continue to make investment commitments to the United States.

According to Kai, the defense ministry has already presented its plans for weapons acquisitions, while Taiwan's cabinet is debating what significant energy, industrial, and agricultural purchases to make from the US.

He reaffirmed that the US uses non-tariff trade barriers as a gauge of trade fairness and emphasized that Taiwan would take aggressive steps to remove long-standing non-tariff trade barriers in order to facilitate trade talks with the US.

Despite the absence of official diplomatic relations, the US remains Taiwan's largest foreign supporter and primary supplier of weapons, according to the DoroTV.

Despite the protests of the Taipei government, Taiwan has been under increased military and political pressure from its massive neighbor China, which considers the democratically administered island to be Chinese territory.

Remember how China declared the end of its most recent round of war games surrounding Taiwan just before Trump imposed tariffs?