Lai Says No Retaliatory Tariffs, Taiwan To Buy More U.S. Goods

TaiwanPlus News

President Lai Ching-te says Taiwan will not impose retaliatory tariffs against the U.S., after Donald Trump announced a 32% tax rate on Taiwanese imports. Lai laid out a five-measure strategy to safeguard the country's economic interests, including buying more U.S. goods and upping Taiwanese investment.

Transcript

00:00Hello, everyone.

00:02In a video addressed to the nation,

00:04Taiwan President Lai Ching-teh laid out his plan

00:07to safeguard the economy four days after

00:10U.S. President Donald Trump waged 32% tariffs

00:14on Taiwanese goods, excluding chips,

00:17a move Taipei says is strongly unreasonable.

00:21Despite that, Lai announced that Taiwan

00:23will not pursue reciprocal action.

00:26Taiwan has no plans to impose tariffs.

00:30As long as the U.S. investment promises

00:33are in line with national interests,

00:35there will be no changes.

00:37Lai also pledged to proactively remove

00:40non-tariff barriers, which could include

00:43Taiwanese restrictions on U.S. meat and cars,

00:47which Washington highlighted just days

00:49before Trump's announcement of broad global tariffs,

00:52a move by Lai to show the U.S.

00:55that trade with Taiwan is fair.

00:57Trump's new tariffs aim to stop what he says

01:00is his country being ripped off,

01:03including by allies.

01:04Washington says over 50 countries

01:07have now reached out to talk trade.

01:09Just so you understand the power of what I'm doing,

01:12every country is calling and being very solicitous of us.

01:16Tokyo, which faces a 24% tariff,

01:20will continue to ask Trump to lower its tariff rate,

01:24with Prime Minister Ishiba Shigeru

01:26saying he's willing to meet with Trump directly.

01:29Bangkok, facing a 36% tariff,

01:32has pledged to buy more U.S. energy and aircraft.

01:36Meanwhile, Beijing has hit back hard,

01:38imposing 34% tariffs on U.S. goods in retaliation.

01:43The EU and Canada also vowing to strike back.

01:49In Taipei, Lai is offering zero tariffs

01:52as the basis for negotiations,

01:55as part of his five-point strategy.

01:57But he's also been firm,

01:59saying Taiwan will make clear

02:01its role in American prosperity.

02:09Lai has also vowed to buy more American goods.

02:13But some economists warn this may not be enough

02:16to get at the heart of the issue.

02:18Taiwan's large trade surplus with the U.S.

02:21and its reputation in Washington as a currency manipulator.

02:25Economists point to Taiwan's central bank

02:28and how, for years, it's kept the exchange rate low.

02:32The central bank will never, ever admit

02:34that they are intervening the market.

02:36They always say that we're only intervening the market

02:38to the extent that we want to stabilize the currency.

02:41But that's not true.

02:42The exchange rate policy is very influential

02:46because once you change that,

02:47it's going to reduce the trade surplus immediately.

02:50Meanwhile, Lai's cabinet has put forward

02:52a $2.7 billion U.S. package

02:55to help local firms weather the storm,

02:58a plan that must now pass an opposition-led legislature.

03:02The head of the Taiwan People's Party

03:04speaking out against Lai,

03:07saying the president should have been more prepared

03:09for Trump's 32 percent tariff rate.

03:24The administration will be looking to get

03:26both the opposition Kuomintang

03:28and Taiwan People's Party on board

03:30and set aside ongoing political spats

03:33to band together and protect Taiwan's interest

03:36as the U.S.'s imminent tariffs

03:38stand to upend the global economy.

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