Taiwan Embraces Zero Tariffs Amid Tensions with U.S.

Taiwan's President Lai Ching-te proposes zero tariffs in trade talks with the U.S. following President Trump's new tariffs on Taiwan. Despite the trade challenges, Taiwan pledges to increase U.S. investments. The move aims to smoothen Taiwan-U.S. relations amid increasing pressure from China.

Amid heightened trade tensions, Taiwan's President Lai Ching-te has proposed zero tariffs in U.S. trade talks, aiming to eliminate trade barriers rather than impose reciprocal tariffs. This follows President Donald Trump's announcement of increased tariffs on several trading partners, including Taiwan, which faces a 32% duty on its products. Importantly, these tariffs do not apply to semiconductors, a key export for Taiwan.

In a video message post a meeting with small and medium-sized enterprise executives, Lai acknowledged Taiwan's economic dependency on trade and expressed efforts to mitigate the impacts of the U.S. tariffs. He suggested the tariff negotiations could be based on a 'zero tariffs' approach, drawing parallels with the U.S.-Canada-Mexico free trade agreement.

Lai assured that Taiwan will not engage in tariff retaliation and planned continued investments in the U.S., highlighted by TSMC's $100 billion commitment. He also mentioned exploring significant purchases of U.S. products across various sectors to deepen industrial cooperation, amidst ongoing pressure from China.

(With inputs from agencies.)