Taiwan President Lai unveils five-point plan to counter 32% US tariffs without retaliation

Taiwan’s President Lai Ching-te has unveiled a five-pronged strategy to address the United States’ recent imposition of a 32% tariff on Taiwanese imports without resorting to retaliation. Levies targeted at semiconductor exports are excluded so far, but the 32% tariff is among the highest in Asia.Calling for calm and unity, Lai said the government would not adopt counter-tariffs and would instead focus on negotiations, support for domestic industries, and long-term economic planning to steer Taiwan through what he described as a significant challenge to its export-driven economy.
In his address, President Lai reassured the public of Taiwan’s economic resilience, citing last year’s trade numbers with the US: $111.4 billion in exports, comprising 23.4% of Taiwan’s total. Of this, 65.4% were ICT products and electronic components, sectors where Taiwan remains globally competitive.
“Please do not panic,” Lai said. “With the right strategy and cooperation between public and private sectors, we can reduce the impact.”He stressed that Taiwan would not impose retaliatory tariffs and confirmed that investment commitments in the US would continue, provided they align with national interests.

Also Read: Billionaire investor William Ackman says US Commerce Secretary Howard Lutnick profits if economy crashes

The Five-Pronged Response
1. Negotiation Over Confrontation

Taiwan will pursue improved tariff terms through talks, led by Vice Premier Cheng Li-chiun. The plan includes increasing US-bound investments, expanding US imports to reduce the trade gap, eliminating non-tariff barriers, and tackling issues like high-tech export controls and illegal transshipments.2. Support for Affected Sectors

Premier Cho Jung-tai’s team has announced a relief package with 20 targeted measures across nine sectors to help industries adapt, innovate, and transform.

3. Long-Term Economic Resilience

The government will push forward with development plans to diversify markets, strengthen supply chains, and build Taiwan into an “AI island.” Sectors like semiconductor manufacturing, smart tech, defence, healthcare, and next-gen communications will be central to this transformation.

4. ‘Taiwan + US’ Framework

Taiwan will improve its investment climate by incentivising businesses to stay and grow locally, while continuing to deepen ties with the US. The broader economic strategy will be adjusted to root development in Taiwan while expanding global reach.

5. Industry Listening Tours

Both Lai and Premier Cho will lead consultations with industry leaders to hear concerns and troubleshoot issues directly.

President Lai referenced Taiwan’s survival through past crises—from energy shortages to pandemics—and urged lawmakers across party lines to support the new measures. “We have always emerged stronger,” he said. “Now is the time to work together, government and civil society alike, to open a wider path forward for Taiwan’s economy.”

Taiwan’s stock market fell the most on record on Monday, April 7, following the global selloff triggered by President Donald Trump’s tariff hikes.