Taiwan lines up sweeteners for US after Trump tariff blow. But how far will they go?

Taiwan has launched backchannel efforts in hopes of easing the impact, but its large US trade surplus may pose a hurdle, analyst warns

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Taiwan, which posted a US$74 billion trade surplus with the US last year, is set to be among the hardest hit by the new tariffs. Photo: AFP

Published: 6:26pm, 8 Apr 2025Updated: 6:50pm, 8 Apr 2025

Taiwan is offering a sweeping package of zero duties on American goods, non-retaliation pledges and increased US investments as it rushes to prepare the ground for talks with Washington aimed at easing the impact of steep new import tariffs.

However, analysts said that US President Donald Trump’s hardline, transactional approach to world affairs meant how far Taiwan’s goodwill gestures would work remained to be seen.

Taiwanese leader William Lai Ching-te, who has hailed Taipei’s relationship with the United States as the “best ever”, approved billions of US dollars in semiconductor investments in America last month.

But the island still got hit by a 32 per cent export tariff last week as part of Trump’s latest “America first” action, signalling that even close partners would not be spared his economic and trade onslaught.

Trump’s across-the-board tariff hike last Wednesday targeted dozens of trade partners, with Taiwan – which posted a US$74 billion trade surplus with the US last year – set to be among the hardest hit.

The move has prompted a flurry of backchannel diplomacy, with several of the worst-affected economies – including Vietnam and Cambodia – rushing to seek exemptions or special negotiations with the Trump administration.