Taiwan Scrambles to Appease Trump as Threat of US Tariffs Looms

It aims to narrow trade surplus with the US; state-run firm may buy more natural gas

- Yip Wai Yee

Taiwan has said that it is "willing" to buy more natural gas from the US, as it seeks to narrow its trade surplus with the country to avoid being slapped with hefty duties.

In a statement on Feb 10, Taiwan's Ministry of Economic Affairs said that state-run energy company CPC is "very interested in Alaska's natural gas... and is also willing to make additional purchases".

The message was clear: Taiwan is taking proactive steps to appease President Donald Trump, after the US leader previously threatened tariffs of up to 100 per cent on the island's prized semiconductor chips.

Doing so is necessary for Taipei, and certainly not just for the protection of its economic interests, analysts said.

"Maintaining a nice relationship with the US is important for Taiwan for geopolitical reasons," said Dr Ziho Park, an assistant professor of economics at National Taiwan University.

"Importing more US natural gas could be a smarter policy strategy than trying to retaliate against the US by imposing tariffs against American products, like how Canada has tried," he said.

Taipei sees Washington as its most important security backer against Beijing, which claims the self-ruled economy as its territory and has in recent years ratcheted up military, diplomatic and economic pressure on the island.

But Taiwan is now having to scramble to reach compromises with the US on trade as the spectre of Mr Trump's tariffs on overseas-made chips looms.