Taiwan President announces to adopt five response strategy for dealing with US tariffs

Taipei [Taiwan], April 7 (ANI): Taiwan's President Lai Ching-te delivered remarks regarding the impact of the 32 per cent tariff that the United States government recently imposed on imports from Taiwan in the name of reciprocity. He announced that Taiwan will adopt a five-response strategy to deal with these tariffs and will not adopt retaliatory tariffs towards the US.
In his remarks, he noted that the five-pronged strategy includes making every effort to improve reciprocal tariff rates through negotiations, adopting a support plan for affected domestic industries, adopting medium--and long-term economic development plans, forming new "Taiwan plus the US" arrangements, and launching industry listening tours.
President Lai noted that the government and civil society would work together to support the measures that the Executive Yuan will take to open up a broader path for Taiwan's economy.
Noting that the tariffs are bound to have a major impact as Taiwan is an export-led economy, he said the country must proceed carefully to turn danger into safety.
President Lai gave statistics on Taiwan's trade with US. "We find that last year Taiwan's exports to the US were valued at USD 111.4 billion, accounting for 23.4 per cent of total export value, with the other 75-plus per cent of products sold worldwide to countries other than the US. Of products sold to the US, competitive ICT products and electronic components accounted for 65.4 per cent. This shows that Taiwan's economy does still have considerable resilience. As long as our response strategies are appropriate, and the public and private sectors join forces, we can reduce impacts. Please do not panic", he said.
In a significant statement he said that Taiwan has no plans to adopt retaliatory tariffs. "To address the reciprocal tariffs by the US, Taiwan has no plans to adopt retaliatory tariffs. There will be no change in corporate investment commitments to the US, as long as they are consistent with national interests."
Explaining the five point strategy he noted that the first strategy is about making effort to improve reciprocal tariff rates through negotiations using five methods, such as Taiwan's negotiation team led by Vice Premier Cheng Li-chiun; expand purchases from the US and thereby reduce the trade deficit; expand investments in the US; eliminate non-tariff barriers to trade and resolve the issue of high-tech export controls and the other regards illegal transshipment of dumped goods, otherwise referred to as "origin washing."
For strategy two, he noted that the affected industries would see timely and needed support and assistance with Premier Cho Jung-tai and his administrative team recently announcing a package of 20 specific measures designed to address nine areas, thereby helping each industry innovate, upgrade, and transform.
For strategy three he noted the adoption of medium- and long-term economic development plans, which will see the government proactively cooperate with friends and allies, develop a diverse range of markets, and achieve closer integration of entities in the upper, middle, and lower reaches of industrial supply chains.
He gave a call to transform Taiwan's industrial ecosystem and play on their strengths in sectors such areas as semiconductor manufacturing, integrated chip design, ICT, and smart manufacturing to build Taiwan into an "AI island", and promote relevant applications for food, clothing, housing, and transportation, as well as military, security and surveillance, next-generation communications, and the medical and health and wellness industries as we advance toward a smarter, more sustainable, and more prosperous new Taiwan.
For strategy four he emphasised on the "Taiwan plus the US" arrangement which would see the governmentl incentivize investments, carry out deregulation, and continue to improve Taiwan's investment climate to enable corporations to stay in Taiwan.
He noted that the national economic development strategy will be adjusted as follows so as to stay firmly rooted in Taiwan while expanding global presence, strengthening US ties, and marketing worldwide. "We intend to make use of the new state of supply chains to strengthen cooperation between Taiwanese and US industries, and gain further access to US markets."
The details of strategy five, which is launching industry listening tours includes administrative teams led by the President as well as Premier Cho to hear out industry concerns for quickly resolving problems.
Bringing to attention how Taiwan had survived two energy crises, the Asian financial crisis, the global financial crisis, and pandemics, he noted that the Taiwanese economy has emerged from these crises stronger and more resilient than ever. He gave a call to all parties in the legislature, both ruling and opposition, to support measures for opening a broader path for Taiwan's economy. (ANI)