Taiwan responds to US 32 percent tariffs with diplomacy, not retaliation

Lai Ching-te says Taiwan will not retaliate against Trump’s tariff hike but seeks talks with Washington.

Containers are stacked at the Port of Keelung on April 4, 2025, in Keelung, Taiwan. Photo by Annabelle Chih/Getty Images

By Anna Fadiah and Hayu Andini

In a firm yet measured response to recent developments, Taiwan has responded to US 32 percent tariffs with a strategy focused on diplomacy, dialogue, and continued cooperation. Speaking on Sunday, April 6, Taiwanese President Lai Ching-te addressed the public in a video message where he made it clear that Taipei has no intention of retaliating against the United States, despite Washington’s unexpected move to impose steep tariffs on Taiwanese goods.

The announcement came days after U.S. President Donald Trump revealed a sweeping tariff package, slapping new import duties ranging from 10 percent to as high as 50 percent on various goods from multiple countries. Among those targeted is Taiwan, a long-standing U.S. ally, whose exports to America will now face a 32 percent tariff hike. While many observers speculated that this might provoke a tit-for-tat trade war, Lai Ching-te chose a different path—one focused on maintaining economic stability and open channels of communication.

“Taiwan has no plans to take retaliatory tariffs against the United States’ ‘reciprocal tariffs,’” Lai said during his national address. “Investment by Taiwanese companies in the U.S. will also continue without any changes, as long as it aligns with our national interests.”

A balanced message in turbulent times

The Taiwanese government’s response to the 32 percent U.S. tariffs is shaped by economic pragmatism and a desire to protect long-term bilateral ties. Lai acknowledged that the new tariffs would have a “significant impact” on Taiwan’s economy, especially given the island’s robust trade relationship with the U.S. But he urged citizens not to panic, reassuring them that Taiwan’s economic fundamentals remain strong.

“We are not reacting emotionally, but logically,” Lai said. “We believe in long-term cooperation over short-term confrontation.”

This measured approach is in line with Taiwan’s broader economic and geopolitical strategy—prioritizing dialogue and integration into global supply chains, especially in sectors like semiconductors, electronics, and green energy. While China has long been Taiwan’s largest trading partner, the U.S. is a crucial destination for many of the island’s high-tech exports, including chips, machinery, and communications equipment.

To mitigate the economic effects of the tariffs and to explore possible exemptions or adjustments, Lai Ching-te also revealed that his administration had already formed a negotiating team. This group, comprising senior trade officials, economic advisors, and representatives from key industries, will enter into formal talks with the U.S. government in the coming weeks.

According to Lai, Taiwan will advocate for a fair reassessment of the tariffs, particularly on high-value sectors such as electronics and communications technology, which are critical not just to Taiwan’s economy but also to American industries that depend on these imports.

“We believe the United States will recognize the strategic value of Taiwanese industries, especially in the high-tech space,” Lai noted.

This step highlights a clear contrast between Taiwan’s current stance and the more adversarial tone seen in recent trade spats around the world. By choosing diplomacy over escalation, Taiwan is positioning itself as a reliable and responsible economic partner amid a rapidly changing global trade environment.

Rather than pulling back, Lai also emphasized that Taiwanese investment in the U.S. will not only continue but may even increase, especially in key areas aligned with the Biden-era push for domestic manufacturing and clean energy. Though Trump announced the tariffs, Taiwan’s government remains committed to deepening trade and industrial ties with the United States—on the condition that such efforts serve both economic and national interests.

Sectors identified by Lai’s administration for continued investment include:

Electronics and semiconductors
Information and communications technology
Petrochemicals
Liquefied natural gas (LNG) infrastructure

Many of Taiwan’s largest multinational corporations, including TSMC (Taiwan Semiconductor Manufacturing Company), already operate manufacturing and R&D facilities in the United States. These companies have been essential in bridging the economic relationship between the two democracies, and Taiwan’s government wants to ensure that these collaborations endure despite the current tariff tensions.

A message of resilience and stability

Throughout his address, Lai Ching-te struck a tone of resilience and stability. He assured the Taiwanese people that while the tariffs pose challenges, the government is fully equipped to handle them. Taiwan, he emphasized, has weathered global financial crises, supply chain disruptions, and diplomatic setbacks in the past—and emerged stronger.

“We are entering this chapter with clarity, confidence, and conviction,” Lai said.

Observers believe that Taiwan’s response could serve as a model for other U.S. allies who may find themselves unexpectedly hit by the same tariff measures. Instead of descending into a spiral of retaliatory measures, Taiwan is demonstrating that diplomacy, backed by strong economic fundamentals, can still lead to productive outcomes in a turbulent global economy.

As the situation evolves, much will depend on how Washington responds to Taiwan’s diplomatic overtures. Analysts say it’s likely that some flexibility will be introduced into the tariff framework—particularly if American industries begin to feel the pinch from higher import costs or disrupted supply chains.

In the meantime, Lai’s administration is doubling down on domestic innovation and international partnerships, reaffirming Taiwan’s commitment to a rules-based international order and open trade.

“We are not just reacting to tariffs—we are building a better foundation for our economic future,” Lai concluded.

Taiwan’s response to US 32 percent tariffs reflects a calculated and principled approach in an age of economic nationalism. While the tariff decision by the United States may have come as a surprise, Taiwan is choosing to lead with negotiation, strategic investment, and a focus on long-term resilience. As diplomatic discussions begin, the world will be watching to see how this new chapter in U.S.-Taiwan economic relations unfolds. What remains certain is that Taiwan is not stepping back—it’s stepping forward with determination, guided by the belief that mutual respect and cooperation still matter in global trade.