Taipei: The leaders of Taiwan's main opposition parties criticized the government's response to United States President Donald Trump's "reciprocal tariffs," claiming it failed to secure any benefits despite pledges to increase investment in the U.S.

According to Focus Taiwan, Eric Chu, chairman of the main opposition Kuomintang (KMT), and Huang Kuo-chang, leader of the Taiwan People's Party (TPP), met to discuss the economic challenges posed by Trump's tariffs and the "democratic crisis" Taiwan was experiencing. Chu highlighted that while the focus was on the tariffs, the more pressing issues for Trump were the U.S.' exchange rate and debt crises, which could present Taiwan with significant challenges.

Chu emphasized a looming crisis in June when US$6.5 trillion in U.S. national debt is due, posing a real risk for Taiwan's US$578 billion in foreign exchange reserves, with 80 percent in U.S. national debt. This leaves Taiwan susceptible to economic shocks if the U.S. fails to repay its debt, Chu noted.

The Trump administration initially announced a 32 percent tariff on imports from Taiwan on April 2, U.S. time, later exempting computers, smartphones, and semiconductors on April 11. A week later, the tariffs were postponed for three months, maintaining a basic 10 percent import duty on goods from most countries.

In response, President Lai Ching-te announced plans to increase U.S. investment, endorsing an additional US$100 billion investment by Taiwan Semiconductor Manufacturing Co. (TSMC) in March. However, Chu argued this has not exempted Taiwan from the tariffs.

With TSMC, Foxconn, and Wistron collaborating with Nvidia to invest US$500 billion in U.S. AI server production, Chu questioned what Taiwan gains in return. Huang criticized the ruling Democratic Progressive Party (DPP) for not providing an impact assessment report on the tariffs since their announcement.

The opposition plans to create a platform comprising academics, former economic officials, industry representatives, and local government heads to evaluate the tariffs' impact over the next six months, Huang said. He stressed that negotiations with the U.S. should not result in deals inferior to those of Taiwan's main trade competitors, warning of catastrophic ramifications for Taiwan's industrial sector.

Huang advocated for a free trade agreement with the U.S. to mitigate the tariffs' negative impact, emphasizing the need for stable international trade relations. He urged the ruling party to push for Taiwan to be treated as a true ally by signing an FTA.

In response, DPP spokesperson Justin Wu criticized the opposition for "rumormongering," implying the DPP had not taken a proactive stance on the tariff issue. At a DPP headquarters news conference, Wu stated that Lai and Premier Cho Jung-tai had engaged in exchanges with various sector representatives since the tariffs were announced. Wu and DPP spokesperson Han Ying outlined the Cabinet's measures, including an NT$88 billion (US$2.7 billion) industry support plan.

During Cho's debrief to the Legislature on April 11, he detailed the tariffs' expected impact on various sectors, noting the absence of Huang and TPP colleagues. Wu expressed regret over the opposition's political tactics, claiming they were a political stunt under the guise of unity and public interest.