Taiwan’s central bank defended the island’s trade and currency policies on Wednesday, addressing concerns ahead of potential tariffs from U.S. President Donald Trump. The bank attributed Taiwan’s high current account surplus to structural factors and emphasized that Washington understands the situation.
The Trump administration, led by Treasury Secretary Scott Bessent, has indicated that the upcoming reciprocal tariff measures, set to be announced on April 2, will target 15 countries with the largest trade surpluses. Bessent has referred to this group as the “Dirty 15,” though no specific countries have been named. However, U.S. Census Bureau data suggests Taiwan is among them, alongside China, South Korea, and the European Union.
In a report to lawmakers, Taiwan’s central bank highlighted that the island’s current account surplus accounted for 14.3% of GDP in the previous year.
“This surplus is a result of the sharp rise in U.S. demand for Taiwan’s technological products and the subsequent expansion of our trade surplus with the United States. The U.S. side acknowledges this perspective,” the central bank stated.
Taiwan’s trade surplus with the U.S. surged by 83% last year, with exports to the U.S. reaching a record $111.4 billion. This growth was primarily driven by the strong demand for high-tech products, particularly semiconductors, in which Taiwan holds a dominant position.
“Given Taiwan’s substantial trade surplus with the United States, the risk of bilateral trade disputes must be carefully managed,” the central bank warned.
Taiwan has previously been placed on the U.S. Treasury Department’s foreign exchange “monitoring” list due to its trade surplus and sizable current account surplus.
The central bank asserted that its exchange rate policy is designed to ensure an “orderly” foreign exchange market and maintain financial stability, rather than to secure an unfair competitive advantage in trade.
Additionally, the bank expressed concerns over the unpredictability of Trump’s economic and trade policies, particularly regarding tariffs.
“The impact of tariff increases is particularly significant, as it could hinder global economic growth and contribute to rising inflation,” the central bank noted.
Taiwan continues to closely monitor developments, seeking to navigate trade relations with the U.S. while maintaining economic stability.
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