Taiwan Sends Officials to Washington Amid Potential US Tariffs

Taiwan has dispatched officials to Washington to engage in discussions regarding potential tariffs proposed by US President Donald Trump. Economy Minister Kuo Jyh-huei confirmed that Taiwan has prepared for any possible imposition of tariffs, which could significantly impact the nation's robust trade surplus with the United States. Last year, Taiwan's trade surplus with the US surged by an impressive 83%, with exports hitting a record $111.4 billion, primarily due to high demand for high-tech products such as semiconductors.

The looming threat of tariffs particularly concerns Taiwan's tech firms, as they face potential levies on imported chips. Taiwan is home to the world's largest contract chipmaker, TSMC, and its chip sector enjoys a "win-win" cooperation with US companies. During last year's campaign, Trump accused Taiwan of having stolen American semiconductor business, a claim that adds a layer of complexity to the ongoing negotiations.

Trump is expected to announce reciprocal tariffs on several economies by Monday or Tuesday. In response, Kuo has sent a deputy minister and a deputy section chief to Washington to address the issue directly. Kuo expressed hope that the discussions would lead to a satisfactory resolution for both parties.

"We hope we can satisfy US demands when it comes to this." – Kuo

In addition to addressing trade surplus concerns, Taiwan is exploring energy imports as part of its strategic response. Japan plans to import a record amount of US liquefied natural gas (LNG) shortly, setting an example that Taiwan might follow. Currently, Taiwan's primary LNG suppliers are Australia and Qatar. Kuo suggested that increasing imports of US energy could be a viable solution, echoing Trump's remarks on Japan's strong determination in energy matters.

The potential tariffs could affect the intricate economic ties between Taiwan and the United States. With Taiwan being a major player in the global semiconductor industry, any disruptions could have widespread implications not only for Taiwanese tech firms but also for US companies reliant on these critical components.