Taiwan Gears Up for U.S. Tariff Challenges Amid Surplus Surge

Taiwan braces for potential U.S. reciprocal tariffs, focusing on strong demand-driven trade surplus rather than unfair practices. A government meeting led by President Lai Ching-te strategizes responses to expected tariffs targeting nations with significant surpluses. Measures include boosting imports and supporting affected industries to mitigate economic effects.

In response to potential reciprocal tariffs from the United States, Taiwan is set to implement contingency plans. Officials emphasize that Taiwan's trade surplus arises from robust demand for its technological exports, not from any unfair trade practices. This development was reported by Taiwan News.

President Lai Ching-te spearheaded a high-level meeting to prepare Taiwan's strategy ahead of a possible tariff announcement. Premier Cho Jung-tai presented an economic impact report, highlighting the implications of various tariff levels. President Lai directed relevant agencies to bolster industries potentially affected and to explore measures that could mitigate economic disruptions.

The U.S. administration, intent on addressing trade imbalances, plans to impose tariffs on nations with substantial trade surpluses, including Taiwan, which ranks sixth following China, Mexico, Vietnam, Ireland, and Germany. Proactively, Taiwan has been narrowing its trade surplus with the U.S. by securing future import agreements.

The surge in Taiwan's trade surplus is largely attributed to increased U.S. demand for semiconductor and technology products, as noted by Taiwan's Central Bank. Last year, this demand led to a significant surplus increase, spanning 83 percent, reaching a record NTD 3.69 trillion (USD 111.4 billion).

(With inputs from agencies.)