Taiwan is pledging to increase its imports of U.S. oil and gas, a key issue in ongoing tariff talks with the Trump Administration, President Lai Ching-te announced on Tuesday.
According to Lai’s office, Taiwan’s commitment to purchasing more energy resources from the United States, including natural gas and oil, plays a crucial role in the country’s efforts to strengthen its energy independence. It also forms a central part of the tariff negotiations between Taiwan and the U.S., as reported by Reuters.
Currently, U.S. liquefied natural gas (LNG) makes up about 10% of Taiwan’s total LNG imports. Earlier this year, Taiwan’s state-owned CPC Corporation signed a letter of intent to invest in the $44-billion Alaska LNG export project, further deepening its ties to U.S. energy.
Despite these commitments, Taiwan’s experience shows that increased purchases of U.S. energy resources might not shield it from tariffs. Taiwan was recently hit with a 32% tariff, which has been temporarily suspended for 90 days, even after the country made significant investments in U.S. energy ventures.
For Taiwan, the issue is complicated by the imbalance in trade. Taiwan’s exports to the U.S., primarily semiconductors, significantly outweigh its imports of U.S. goods, putting the island nation at a disadvantage in tariff negotiations.
Taiwan is facing one of the highest tariffs, despite being one of the few countries committed to large-scale investments, such as in the Alaska LNG project. In contrast, other countries like Japan and South Korea are still hesitant to make similar pledges.
Taiwan is not alone in its struggle. Several other Asian nations are also seeking ways to avoid hefty U.S. tariffs by pledging to increase imports of U.S. energy. High-level delegations from multiple Asian countries are traveling to Washington, D.C., to negotiate with U.S. officials on tariffs that have been particularly impactful on economies in Asia and Southeast Asia.
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