Taiwan seeks stronger ties with US amid looming tariffs

In a bid to fortify its economic relationship with the United States, Taiwan's president Lai Ching-te announced plans on a Tuesday in May 2025 to increase the island's purchase of American goods. This initiative includes acquiring natural gas, oil, agricultural products, and military weaponry. The move comes as the Trump administration has threatened a significant 32% tariff on imports from Taiwan, spurring concerns about the potential impact on bilateral trade. Despite these tensions, Lai characterized the trade disagreements as 'frictions between friends' during a visit from a congressional delegation from the U.S. to Taipei. Additionally, the gesture aims to position Taiwan as a proactive partner in the reindustrialization efforts of the United States, particularly in sectors such as artificial intelligence, where Taiwan is eager to take a leading role. As trade relations have tightened over recent years, Taiwan's dependency on U.S. goods has become more pronounced, with the U.S. emerging as the largest recipient of Taiwanese foreign investment, which includes significant sums invested by TSMC in Arizona. Despite this, there remains a substantial trade deficit for the U.S. with Taiwan, amounting to $116.3 billion in 2024, indicating an imbalance in trade activity. Observers note that the increasing economic partnership between the two nations occurs against a backdrop of rising pressure from China, which considers Taiwan a breakaway province. The U.S. is committed through its laws to providing Taiwan with defense capabilities to deter potential aggression from Beijing, which underscores the strategic importance of Taiwan's economic resilience and self-sufficiency as it seeks to avoid economic coercion from the mainland. Lai's acknowledgment of the situation reflects an understanding of the critical need for Taiwan to engage in more balanced trade with its allies, particularly when facing substantial threats from China.