On Sunday Taiwan proposed zero tariffs on the US, signaling Taiwan’s intention to avoid escalating trade tensions following the imposition of sweeping U.S. tariffs.
President Donald Trump recently announced broad import tariffs targeting dozens of U.S. trade partners, including Taiwan. As part of the measures, Taiwanese exports are now subject to a 32% duty, a significant blow for an economy with a sizable trade surplus with the U.S. Notably, the new tariffs do not apply to semiconductors — one of Taiwan’s most important export sectors.
In a video message shared by his office following a meeting with small and medium-sized business leaders, President Lai acknowledged the potential economic challenges posed by the tariffs but expressed optimism that Taiwan could weather the impact. He stressed the importance of cooperation over confrontation.
“Taiwan is willing to start negotiations with the U.S. based on a zero-tariff model, similar to the framework of the U.S.-Mexico-Canada Agreement,” Lai said. “We will not pursue retaliatory tariffs.”
He reaffirmed Taiwan’s commitment to strengthening its economic partnership with the U.S., stating that Taiwanese investment in America would continue — and likely grow — as long as it aligns with Taiwan’s national interests.
One of the clearest signs of this commitment is Taiwanese chipmaker TSMC’s announcement last month of an additional $100 billion investment in its U.S. operations.
Lai highlighted this as a foundation for deepening cooperation, adding that other sectors — including electronics, information and communications, petrochemicals, and natural gas — are poised to expand their investments in the U.S. as well.
“Future cooperation between Taiwan and the United States will not only be maintained but deepened,” Lai said.
He also noted that Taiwan’s cabinet is actively reviewing plans to make large-scale purchases of U.S. agricultural, industrial, and energy products, and the defense ministry has already outlined new weapons procurement initiatives. “All purchases will be pursued with urgency,” Lai added.
Addressing concerns around trade fairness, Lai acknowledged that non-tariff trade barriers are a critical issue for Washington and pledged to resolve longstanding regulatory obstacles to help facilitate smoother trade discussions.
“Taiwan will work proactively to eliminate non-tariff trade barriers that have existed for years,” he said, signaling a willingness to address U.S. concerns without resorting to reciprocal penalties.
Despite lacking formal diplomatic ties, the U.S. remains Taiwan’s most vital international partner, especially in defense. As China continues to exert military and political pressure on the self-governing island, Taiwan has leaned heavily on American support.
Lai also referenced the recent Chinese military exercises around Taiwan, which concluded shortly before Trump’s tariff announcement, underscoring the broader geopolitical stakes at play.
“Taiwan has overcome major global crises before,” Lai said. “We’ve not only weathered adversity — we’ve turned those moments into opportunities to build a stronger, more resilient economy.”