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2025-04-22

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Executive Yuan: 32% tax rate is already under control, but needs to re-examine the affected items.

Executive Yuan: 32% tax rate is already under control, but needs to re-examine the affected items.
讀後心得
U.S. President Trump announced a 32% equivalent tariff on Taiwan, and the administration immediately activated its response mechanism. The spokesperson for the Executive Yuan stated that this tariff was within expected ranges, but there is a need to reassess the affected industries and adjust assistance programs. They will continue to negotiate with the U.S. side and pointed out that the policy reflects an unreasonable calculation method, which does not align with Taiwan-U.S. trade relations. Executive Yuan Premier Su Tseng-chang also convened a meeting to discuss countermeasures and reiterated that Taiwan will vigorously uphold national interests.

The President of the United States announced a reciprocal tariff of 32% on Taiwan, with the administration's team activating response measures at 4 a.m. today. Sources from the Executive Yuan indicated that this reciprocal tariff was within the team's simulation scope, and they have grasped the relevant situation. However, they need to re-evaluate the impacted items to consider whether to adjust the previously proposed assistance plans for the affected industries, and will continue to negotiate with the U.S. side regarding unreasonable aspects.

This reciprocal tariff is calculated based on half of the tariffs imposed by other countries on the United States, resulting in a 32% tariff on Taiwan. According to data shown by Trump, the so-called tariffs imposed by various countries on the U.S. also include the effects of currency manipulation and trade barriers. Trump's announcement was made around 4 a.m. Taiwan time, and the Executive Yuan team immediately locked onto his speech to engage in cross-departmental discussions and adjust response plans, with no time lag in their reaction.

During subsequent meetings, the Executive Yuan's premier discussed the affected items and reported to the president in the afternoon on industry support measures and economic and financial stability plans. Regarding the unexpected 32% tariff, sources from the Executive Yuan pointed out that the U.S. tariff policy would impact global trading strategies. Therefore, as early as last year, prior to the U.S. elections, the Executive Yuan established an Economic Diplomacy Working Group and a Taiwan-U.S. Economic and Trade Project Team to continuously monitor developments in U.S. economic and trade policies. This tariff was also within the team's simulation scope.

Sources from the Executive Yuan further explained that the team had estimated based on a basic tariff rate of 10% and performed simulations based on different scenarios for industries and countries. They have contained the tariff rate within that scope, but the impacted industries still require detailed consolidation. Although semiconductors are exempt, the overall impact on the industrial chain remains profound. Given that many of Taiwan's industries have competitive and cooperative relationships with multiple Asian countries, it is necessary to meticulously confirm the reciprocal tariff rates of each country.

Regarding the retaliatory tariffs imposed by some countries against the U.S., sources from the Executive Yuan responded that Taiwan has clearly stated its position, believing that the tariff rate does not accurately reflect the trade situation between Taiwan and the U.S. They highlighted three main unreasonable aspects: first, the calculation method fails to demonstrate the high complementary nature of the trade structure between Taiwan and the U.S.; second, Taiwan's contributions to the U.S. economy and national security are subjected to high tariffs; third, the U.S. considers low-priced unregulated transshipments, while Taiwan already has relevant preventive measures in place.

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