Taiwan to buy more US oil, gas and farm goods as Trump tariff looms

First Post

27-05-2025

Taiwan's president on Tuesday pledged to buy more American goods, including natural gas and oil, as the selfgoverning island seeks closer ties with the U.S. while threatened with a 32% tariff from the Trump administration. read more
Amid the prospect of a 32% tariff from the Trump administration, Taiwanese President Lai Ching-te on Tuesday committed to expanding purchases of American goods, including oil and natural gas, as part of efforts to strengthen economic ties with the United States.
Speaking during a meeting with a visiting U.S. congressional delegation, Lai said the island also plans to buy more American agricultural products and weapons. These steps, he said, would help promote 'more balanced bilateral trade' and enhance Taiwan's energy independence and security.
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Lai further expressed Taiwan's willingness to support U.S. initiatives in revitalising domestic manufacturing and advancing leadership in artificial intelligence.
U.S. Representative Bruce Westerman, who chairs the House Natural Resources Committee, welcomed the dialogue, noting that the United States produces significant amounts of food and fibre and is 'always looking for more friends to share that with.'
Trade and economic ties between Taiwan and the U.S. 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 U.S. 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 U.S. 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 U.S. agricultural exports, Lai said.
However, the U.S. buys far more from Taiwan and had a trade deficit of $116.3 billion in 2024, according to the Office of the U.S. Trade Representative.
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The 32% tariff, as proposed by President Donald Trump as part of his sweeping tariff plan, is on hold except a 10% baseline duty. Earlier this month, Lai downplayed the trade tensions between the U.S. 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 the American Institute in Taiwan, the de facto U.S. diplomatic mission on the island.