What price will Taiwan pay to blunt Trump’s tariffs? Reports spark worries

Taiwan is increasingly anxious about whether it must make sweeping concessions – including a reported US$400 billion investment pledge – to avoid a looming 32 per cent tariff from the United States, set to take effect on Friday.

Adding to the uncertainty are reports that planned visits to the US by Taiwanese leader William Lai Ching-te and Defence Minister Wellington Koo Li-hsiung were deferred at the last minute.

Analysts said the developments were far from coincidental and might mark a deliberate effort by Washington to dial down Taiwan-related tensions as it sought a breakthrough in trade talks with Beijing.

The tariff threat stems from US President Donald Trump’s “Liberation Day” tariff campaign launched in April, which aims to impose duties matching those faced by American exporters. While most major trading partners have reached agreements, Taiwan remains among a small group still negotiating its final rate.

Citing reports by foreign news outlets, including Bloomberg, Taiwanese media said on Thursday that Washington was demanding that Taiwan match the investment commitments made by Japan and South Korea – US$550 billion and US$350 billion respectively – to qualify for the lowest 15 per cent tariff tier.

Taiwan is reportedly considering a US$300-400 billion package, equivalent to four years of the island’s central government budget.

South China Morning Post