In a rapidly evolving trade landscape, Taiwan is stepping up its diplomatic and economic response to U.S. President Donald Trump’s recent announcement of steep “reciprocal tariffs,” which included a 32% levy on Taiwanese exports to the United States.
On Friday morning in Washington, U.S. Trade Representative Jamieson Greer confirmed he was scheduled to speak with his Taiwanese counterpart later that day, signaling the beginning of formal bilateral talks aimed at mitigating the impact of the proposed tariffs and negotiating trade barriers that concern Washington.
The announcement of talks follows Trump’s April 2 declaration of punitive tariffs targeting dozens of countries. Alongside Taiwan, Vietnam (46%) and Israel (17%) were also hit with similar trade restrictions. While the tariffs were initially expected to be implemented quickly, the administration introduced a 90-day delay to allow diplomatic discussions.
📈 Trump’s Reciprocal Tariff Doctrine: A Bold Shift in Trade Policy
President Trump’s 2025 economic policy centers on enforcing “fair and reciprocal trade”, accusing U.S. trade partners of benefiting from asymmetrical trade terms. The tariffs are a reaction to what the administration views as non-tariff barriers, government subsidies, and domestic market protectionism that harm U.S. exports.
Trump’s re-election campaign emphasized bringing manufacturing back to the U.S., and these tariff measures are a key pillar of that policy. Analysts say the move is aimed not just at economic gains but also at gaining leverage ahead of broader trade renegotiations.
While Trump’s critics argue that such aggressive measures could harm global supply chains, supporters believe they are long overdue corrections to a system that disadvantages U.S. industries.
🧾 Taiwan’s Strategic Response: From Negotiation Table to Fiscal Aid
In response, Taiwan has activated a multi-pronged strategy:
- Trade Diplomacy: Taiwan will be among the first group of countries to enter negotiations with the U.S.
- Vice Premier Cheng Li-chiun is expected to lead the negotiation team, while Foreign Minister Lin Chia-lung confirmed that Taiwan’s representative office in Washington has been actively coordinating preliminary discussions.
- President Lai Ching-te, speaking to machinery industry leaders in Taichung, acknowledged the urgency of these talks and reaffirmed Taiwan’s willingness to resolve trade concerns.
🧯 Economic Safety Net: NT$88 Billion (US$2.72 Billion) Support Plan
Recognizing the risk to exporters and manufacturers, Taiwan’s Cabinet has proposed an ambitious NT$88 billion support package spread over four years. This plan includes:
- Subsidies for affected exporters, especially in machinery and electronics.
- Tax relief for impacted firms.
- Financial aid for job retraining and industrial transformation.
- Export diversification funds to help reduce overreliance on the U.S. market.
The package not only offers short-term relief, but also encourages long-term structural transformation to enhance Taiwan’s global competitiveness.
🕊️ Diplomacy vs. Protectionism: Can Both Sides Compromise?
Though the tone of the negotiations is still developing, Greer has said that the U.S. is open to adjustments if partners demonstrate meaningful progress in eliminating trade barriers.
In a Friday interview on Fox News, Greer explained,
“Over the last two days, I had a long discussion with the Vietnamese. We are speaking with the Taiwanese later today… Our team of over 100 is working around the clock to make these negotiations constructive.”
While Greer didn’t specify who his Taiwanese counterpart would be, the Ministry of Foreign Affairs confirmed that preliminary talks have already begun.
A key factor will be Taiwan’s ability to address U.S. concerns about market access, intellectual property, regulatory transparency, and government procurement practices.
🧠 Expert Insight: What’s at Stake?
According to Dr. Evelyn Chang, a trade economist at National Chengchi University:
“This isn’t just about tariffs. It’s about rewriting the rules of trade under Trump’s new order. Taiwan will have to show not just flexibility, but also a strategic vision—how it can remain indispensable to the U.S. tech and manufacturing supply chain.”
She adds that Taiwan’s semiconductor leadership gives it bargaining leverage, particularly as Washington remains reliant on TSMC and other chip makers.
🧾 FAQs
Why did the U.S. impose a 32% tariff on Taiwan?
The U.S. imposed this tariff as part of President Trump’s reciprocal trade policy aimed at countries perceived to maintain trade barriers that disadvantage U.S. exporters.
When will the tariff take effect?
There is a 90-day pause, during which negotiations will take place to potentially resolve the issues before implementation.
Who is leading Taiwan’s negotiation team?
Vice Premier Cheng Li-chiun is expected to lead, while Taiwan’s representative office in Washington is already engaged in early-stage discussions.
What support is Taiwan offering affected industries?
An NT$88 billion (US$2.72 billion) support plan has been proposed to aid exporters, provide tax relief, and invest in job transformation and export diversification.
Could the tariffs be revoked?
Yes, if both sides reach a mutual understanding and Taiwan satisfies U.S. concerns, the tariffs may be suspended or reduced before the 90-day deadline ends.
How does this impact global supply chains?
It increases uncertainty for industries reliant on Taiwan for components, especially semiconductors, and may prompt companies to adjust sourcing or pass on higher costs to consumers.
