Taiwan Parties Divided Over Response to New Trump Tariffs
US President Donald Trump says he's putting 15% tariffs on most US imports. While Taiwan's Cabinet doesn't expect a major impact on Taiwanese businesses, parties are split over how Taiwan should respond. The ruling DPP says it will communicate with Washington and get the best deal possible for Taiwan. But opposition parties want to reexamine a newly-signed US-Taiwan trade deal, and possibly try to rework it.
US Tariff Hike Puts New Pressure on Taiwan Trade Deal
REPORTER:
US President Donald Trump says he’s raising tariffs again—despite a Supreme Court ruling that means he’ll have to use different laws to do it. He’s now invoking a law called Section 122—imposing the maximum that law allows—a 15% levy on almost all US imports. He has 150 days before Congress must approve an extension. And he may not stop there: in a social media post, he said he’ll use the period to look at even more legal ways to raise tariffs.
REPORTER:
Taiwan’s Cabinet isn’t expecting a major impact on Taiwanese exports. But there are questions, including what Trump’s latest moves mean for an investment MOU and a just-signed trade agreement Taiwan’s already worked out with Washington. And, as Trump’s suggested, there could still be additional tariffs under additional laws.
Lee Hui-chih (CABINET SPOKESPERSON):
The US government’s not yet certain how it will implement
the reciprocal trade agreements
it’s already signed with other countries.
But it has announced that tariffs under Section 232
will keep expanding.
The government will closely watch
the Trump administration’s measures.
REPORTER:
Analysts are on the watch, too. Some expect a law generally meant at targeting unfair trade practices could be one effective tool Trump could use to further his protectionist policies.
Tai Chih-yen (CIER):
I think inspections under Section 301
could have a bigger impact
because they involve the use of many trade tools
including embargoes, quotas and tariff rates.
REPORTER:
The tariff issue has brought different responses across party lines. The ruling Democratic Progressive Party seems to want to move forward with the already-agreed trade deal. Vice Premier Cheng Li-chiun, who just around a week ago was in Washington to sign the agreement, says her team will evaluate the situation and communicate with the Trump administration to ensure that Taiwan gets the best deal. President Lai Ching-te has said he wants the same thing.
But the two opposition parties propose a close review of the Taiwan-US trade deal—maybe even reconsidering or renegotiating it given the new circumstances.
Fu Kun-chi (KMT CAUCUS WHIP):
Once the legislature reconvenes
we must strictly examine the entire contents
of the agreement with the US.
Huang Kuo-chang (TPP CHAIR):
Is there a chance we could use this time
to make readjustments to the Taiwan-US trade agreement
we’ve already signed?
REPORTER:
As Taiwan comes back from its long Lunar New Year break, top officials who may have thought the US trade issue settled will return to a new set of conditions. And they’ll have to figure out how they’re going to respond.
Luffy Li and John Van Trieste for TaiwanPlus.
