The impact of US President Donald Trump’s 32-percent tax on goods from Taiwan, which was announced yesterday and is to be implemented next Wednesday, would “exceed expectations,” the Chinese National Association of Industry and Commerce (CNAIC) said in a statement this morning.
The CNIAC warned that the tariffs would pose significant challenges for Taiwan’s export-driven economy and recommended five immediate countermeasures.
The new tariff policy, announced yesterday, aims to “address the injustices of global trade, reshore manufacturing and drive economic growth for the American people," the White House said.
Photo: Taipei Times
Trump would impose "reciprocal tariffs" on US trading partners, with higher rates for countries with larger trade surpluses, including a tariff of 34 percent imposed on China and a 24-percent tariff for Japan.
The reciprocal tariffs do not include semiconductors, energy, pharmaceuticals and "certain minerals that are not available in the United States," according to a White House fact sheet.
Trump is, however, planning separate tariffs to target semiconductors, a White House official said.
The CNAIC suggested immediately activating crisis response measures, conducting a comprehensive review of the potential impacts and strengthening communication with the US.
It further proposed negotiating to lower the tariffs and providing tax relief and financial assistance to affected industries in Taiwan.
Taiwan was the US’ seventh-largest trading partner last year, according to an Executive Yuan trade report.
Taiwan plays a critical and strategic role in the US economy, producing 90 percent of the world’s advanced semiconductors, the American Chamber of Commerce in Taiwan (AmCham) said in a news release this morning.
US industries rely heavily on Taiwan for high-value, capital-intensive products that cannot be mass-produced elsewhere, such as semiconductors, information and communication technology (ICT) and precision machinery, AmCham said.
Moreover, Taiwan’s microchips significantly impact global supply chains and are essential to US industries from technology to cars; aerospace engineering to national defense, it said.
As both sides of the Pacific are facing an increasingly complex geopolitical landscape, the US and Taiwan should seek to strengthen existing economic and trade relations, it said.
In response to shifting global trends and industries, AmCham called for Washington and Taipei officials to continue to promote exchange and cooperation, to support industrial development, market stability, supply chain security and regional peace.
Furthermore, US exports to Taiwan have almost no domestic competition, with imported goods including agricultural products, aircraft and industrial machinery, AmCham said.
US-Taiwan investments have also been trending upwards, with Taiwan's cumulative direct investment in the US reaching US$17.1 billion in 2022, it added.
In the first 10 months of 2024, investments reached US$14 billion, accounting for 30.8 percent of Taiwan’s total outbound investments, it said.
Taiwan is also a critical source of capital in US financial markets, holding approximately US$256 billion in US Treasury securities as of January last year, ranking among the top ten foreign holders, it added.
Taiwan therefore stabilizes the US financial markets and plays an important role in the flow of US capital, it said.
Through continued investment in the US economy, Taiwanese businesses have contributed significantly to creating local jobs and stabilizing financial markets in the US, while making a significant contribution to supply chain resilience, it said.
Kenting National Park service technician Yang Jien-fon (楊政峰) won a silver award in World Grand Prix Photography Awards Spring Season for his photograph of two male rat snakes intertwined in combat. Yang’s colleagues at Kenting National Park said he is a master of nature photography who has been held back by his job in civil service. The awards accept entries in all four seasons across six categories: architectural and urban photography, black-and-white and fine art photography, commercial and fashion photography, documentary and people photography, nature and experimental photography, and mobile photography. Awards are ranked according to scores and divided into platinum, gold and
The Chinese Nationalist Party (KMT) caucus yesterday said it opposes the introduction of migrant workers from India until a mechanism is in place to prevent workers from absconding. Minister of Labor Hung Sun-han (洪申翰) on Thursday told the Legislative Yuan that the first group of migrant workers from India could be introduced as early as this year, as part of a government program. The caucus’ opposition to the policy is based on the assessment that “the risk is too high,” KMT caucus secretary-general Lin Pei-hsiang (林沛祥) said. Taiwan has a serious and long-standing problem of migrant workers absconding from their contracts, indicating that
SPACE VETERAN: Kjell N. Lindgren, who helps lead NASA’s human spaceflight missions, has been on two expeditions on the ISS and has spent 311 days in space Taiwan-born US astronaut Kjell N. Lindgren is to visit Taiwan to promote technological partnerships through one of the programs organized by the US for its 250th national anniversary. Lindgren would be in Taiwan from Tuesday to Saturday next week as part of the US Bureau of Educational and Cultural Affairs’ US Speaker Program, organized to celebrate the 250th anniversary of the signing of the Declaration of Independence, the American Institute in Taiwan (AIT) said in a statement yesterday. Lindgren plans to engage with key leaders across the nation “to advance cutting-edge technological partnerships and inspire the next generation of scientists and engineers,”
TRADE-OFF: Beijing seeks to trade a bowl of tempura for a Chinese delicacy, an official said, while another said its promises were attempts to interfere in the polls The government must carefully consider the national security implications of building a bridge connecting Kinmen County and Xiamen, China, the Public Construction Commission (PCC) said yesterday. PCC Commissioner Derek Chen (陳金德), who is also a minister without portfolio, made the remarks in a meeting of the legislature’s Transportation Committee, after Democratic Progressive Party Legislator Hsu Fu-kuei (徐富癸) asked about China’s proposal of new infrastructure projects to further connect Kinmen and Lienchiang (Matsu) counties with Xiamen. China unveiled the bridge plan, along with nine other policies for Taiwan, on Sunday, the last day of Chinese Nationalist Party (KMT) Chairwoman Cheng Li-wun’s (鄭麗文) visit
RSS