Country after country is lining up to negotiate a better deal with the United States after President Donald Trump on Friday imposed a series of higher tariffs after decades of being “ripped off” by the world. One of the latest is Taiwan, whose President Lai Ching-te announced on Sunday that his country is prepared to adopt a zero-tariff policy for trade with the United States, making it the third major economy to do so after President Donald Trump imposed sweeping tariffs on imports from dozens of countries on April 2.
Taiwan—a top 20 global economy by GDP and purchasing power, according to Global Finance Magazine—has committed to eliminating existing trade barriers rather than retaliating with new tariffs. The island nation is also promising to significantly boost its investment in the United States. Earlier this week, while speaking from the Rose Garden, Trump introduced varying tariff rates on dozens of trading partners, including Taiwan, which now faces a 32 percent tariff on its goods despite running a trade surplus with the U.S.
Notably, tariffs do not affect semiconductors, offering relief for one of Taiwan’s most crucial exports. As of 2025, Taiwan produces 60 percent of the world’s semiconductors—and nearly 90 percent of the most advanced chips. After convening with various small and medium-sized companies at his residence over the weekend, President Lai acknowledged that Taiwan’s heavy reliance on trade might lead to short-term economic challenges.
However, he expressed confidence that these impacts could be minimized, and he then detailed his government’s strategy for trade negotiations with the Trump Administration. “Tariff negotiations can start with ‘zero tariffs’ between Taiwan and the United States, with reference to the U.S.-Canada-Mexico free trade agreement,” Lai said. Taiwan has no plans for retaliatory tariffs and has committed to continuing its investments in the United States as long as they serve its national interests. Last month, Taiwanese firm TSMC, the world’s largest contract chipmaker, announced an additional $100 billion investment in the U.S.
“In the future, in addition to TSMC’s increased investment, other industries, such as electronics, information and communications, petrochemicals, and natural gas will be able to increase investment in the U.S. and deepen Taiwan-U.S. industrial cooperation,” Lai said. Other countries, including the United Kingdom, Vietnam, and India have all said they are ready to make a deal with the ultimate dealmaker, Trump, to avoid the increased U.S. tariff regime he pledged to impose on the campaign trail. Trump himself over the weekend encouraged Americans to give the tariff situation time to play out, promising vast wealth and prosperity in the very near future.
