TAIWAN OFFERS ZERO-TARIFF DEAL TO U.S.

|By Adejumo Adekunle-

-Vows to Remove Trade Barriers, Boost American Investments

Taipei, Taiwan – In a bold move aimed at softening the blow of new U.S. trade tariffs, Taiwanese President Lai Ching-te on Sunday proposed zero tariffs as the foundation for trade negotiations with the United States. He pledged to dismantle trade barriers rather than impose retaliatory tariffs and affirmed Taiwan’s commitment to increasing investments in the U.S.

The proposal comes days after former U.S. President Donald Trump reimposed sweeping import tariffs, slamming dozens of trading partners — including Taiwan — with hefty new duties. Taiwan, which holds a significant trade surplus with the U.S., now faces a 32% tariff on its products. Notably, the measures exempt semiconductors, Taiwan’s top export.

In a video message released after a private meeting with executives from small and medium-sized businesses, President Lai warned that Taiwan’s trade-reliant economy would struggle under the weight of the new duties.

“Tariff negotiations can begin with ‘zero tariffs,’ modeled after the U.S.-Canada-Mexico trade deal,” Lai said.

He stressed that Taiwan would not retaliate, adding that Taiwanese companies would stay invested in the U.S. as long as it aligns with their national interest.

To strengthen economic ties, Lai said his cabinet is evaluating large-scale purchases of American agricultural, industrial, and energy products. He also disclosed that Taiwan’s defense ministry has already submitted military procurement plans.

Lai pledged to dismantle long-standing non-tariff barriers, a key U.S. benchmark for assessing fair trade, to facilitate smoother negotiations.

Despite the absence of formal diplomatic ties, the U.S. remains Taiwan’s top international partner and main arms supplier. The announcement comes at a delicate time, following China’s military drills near the island. Beijing continues to exert military and political pressure, insisting Taiwan is part of its territory — a claim flatly rejected by Taipei.

Taiwan’s zero-tariff proposal signals a strategic pivot aimed at preserving trade relations while maintaining regional stability.