Taipei, April 3 (CNA) The latest tariff actions of U.S. President Donald Trump are expected to pose challenges to Taiwan’s exports-oriented economy, a major Taiwanese business group said Thursday.
In a statement, the Taiwan-based Chinese National Association of Industry and Commerce (CNAIC) said Trump’s new tariffs were higher than expected, and urged Taiwan’s government to take immediate emergency action to protect the local economy.
On Wednesday U.S. time, Trump announced sweeping “reciprocal tariffs” on U.S. trading partners, including a 32 percent tax on Taiwanese goods that is set to take effect on April 9.
At a Rose Garden event, Trump declared a 10 percent baseline tax on imports from all countries starting April 5. Countries with larger trade surpluses with the United States will face higher duties beginning April 9, including Taiwan (32 percent), China (34 percent), Japan (24 percent), South Korea (26 percent), Vietnam (46 percent) and Thailand (37 percent).
However, semiconductors, one of Taiwan’s top exports, as well as other products, including copper, pharmaceuticals and lumber articles, are not covered by the new tariff regime.
The CNAIC said authorities in Taiwan should also improve communications with their American counterparts to cut tariffs while emphasizing the important role of Taiwanese firms in the global supply chain.
The group also suggested that Taiwan increase its purchases of U.S. energy and agricultural products, ramp up investments in the U.S. market and seek a preferential tax status.
The CNAIC urged Taiwan to continue to push for efforts to sign a double taxation avoidance agreement and an investment protection accord with the U.S. to protect Taiwanese investors’ interests.
In the face of Trump’s tariff threats, the CNAIC suggested the government should provide necessary assistance in taxation and offer lending to improve the resilience of and protect the local industrial sector from external shocks.
The CNAIC said Taiwan should upgrade its industries, diversify export markets and reinforce international cooperation in a bid to raise the country’s competitive edge while seeking to sign free trade agreements with its trading partners.
The group said as several countries in Southeast Asia, in which many Taiwanese companies have already had production, are also faced with high tariffs from the Trump administration, the public and private sectors should resolve the headache as soon as possible.
The American Chamber of Commerce in Taiwan (AmCham) said Thursday in a separate statement that Taiwan plays an “indispensable” role in the U.S. economy as Taiwanese firms roll out more than 90 percent of high-end chips in the world, urging both sides to continue to strengthen their trade and economic ties.
“In a time of growing geopolitical complexity, the U.S.-Taiwan partnership is not only a driver of shared economic prosperity but also central to supply chain security and regional stability,” AmCham said.
As the seventh largest trading partner of the U.S. with trade totaling US$158.6 billion in 2024, AmCham said that “Taiwan is a critical supplier of high-value, capital-intensive products essential to American industries — including semiconductors, ICT products and machinery — that cannot rapidly be produced at scale elsewhere.
In turn, AmCham added, the U.S. has sold Taiwan significant volumes of agricultural products, aircraft and industrial machinery, with minimal competition from domestic Taiwanese producers.
According to AmCham, Taiwan invested US$13.97 billion in the U.S. in the first 10 months of this year, accounting for 30.8 percent of Taipei’s total outbound investments.
