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        Customs & Trade

        Taiwan pledges to buy more American goods as a 32% tariff looms

        May 28, 2025

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        Taipei, May 28 (AP) Taiwan's president on Tuesday pledged to buy more American goods, including natural gas and oil, as the self-governing island seeks closer ties with the US while threatened with a 32% tariff from the Trump administration.

        By purchasing more US products that also include weapons and agricultural goods, Taiwan would not only create "more balanced bilateral trade" with the US but also boost its energy autonomy and resilience, said Lai Ching-te, the island's leader, while hosting a US congressional delegation.

        Lai also said the island would be willing to participate in US efforts to reindustrialise and lead the world in artificial intelligence.

        Rep. Bruce Westerman, chair of the House Natural Resources Committee, told Lai that the US produces a lot of food and fibre and is "always looking for more friends to share that with." Trade and economic ties between Taiwan and the US have grown closer in recent years. The island faces rising pressure from China, which sees the island as part of Chinese territory and vows to annex it by force if necessary.

        Washington is bound by its own laws to provide Taipei with the means to defend itself, and politicians — both Republicans and Democrats — have come to believe it is in the US interest to deter Beijing from attacking Taiwan.

        Many policymakers and analysts have argued that arming Taiwan includes not only weapons sales but closer economic and trade ties so the island is less vulnerable to economic coercion from the mainland.

        The US is now the top destination for Taiwan's foreign investments, including $165 billion by Taiwan's semiconductor giant TSMC to build factories in Arizona to make advanced chips. The island also is the 7th largest market for US agricultural exports, Lai said.

        However, the US buys far more from Taiwan and had a trade deficit of $116.3 billion in 2024, according to the Office of the US Trade Representative.

        The 32% tariff, as proposed by President Donald Trump as part of his sweeping tariff plan, is on hold except for a 10% baseline duty. Earlier this month, Lai downplayed the trade tensions between the US and Taiwan as "frictions between friends." The congressional delegation stopped in Taipei as part of the group's larger visit to the Indo-Pacific region through Thursday, according to American Institute in Taiwan, the de facto US diplomatic mission on the island. (AP) AMJ AMJ

        Tariff threat prompts Taiwan to boost US imports to rebalance trade and strengthen economic resilience and security. Facing a threatened 32% tariff proposal from the United States, Taiwan pledged to increase purchases of American goods-targeting energy, agricultural and defense-related imports-to rebalance bilateral trade and bolster energy autonomy and resilience. The pledge is linked to deeper economic integration, support for US reindustrialisation and technology collaboration, and reflects concerns about vulnerability to economic coercion from the mainland. The tariff proposal remains on hold except for a baseline duty.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Tariff threat prompts Taiwan to boost US imports to rebalance trade and strengthen economic resilience and security.

                                Facing a threatened 32% tariff proposal from the United States, Taiwan pledged to increase purchases of American goods-targeting energy, agricultural and defense-related imports-to rebalance bilateral trade and bolster energy autonomy and resilience. The pledge is linked to deeper economic integration, support for US reindustrialisation and technology collaboration, and reflects concerns about vulnerability to economic coercion from the mainland. The tariff proposal remains on hold except for a baseline duty.





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