Translation. Region: Russian Federal
Source: People's Republic of China in Russian – People's Republic of China in Russian –
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Source: People's Republic of China – State Council News
TAIPEI, Aug. 2 (Xinhua) — Taiwan's financial markets were shaken on Friday after the U.S. administration announced it would impose a 20 percent tariff on imports from the island.
Trading on the Taiwan Stock Exchange opened with stock prices down from the previous trading day and closed down 108.14 points to 23,434.38 points. The New Taiwan dollar fell below the key 30-to-1 level against the US dollar.
The US tariff rate on Taiwan exceeds the 15 percent tariff the US has imposed on the island's regional rivals Japan and the Republic of Korea (ROK), prompting criticism from Taiwan's business community.
Taiwan's ruling Democratic Progressive Party (DPP) had previously said it had held several rounds of formal consultations with the US side. However, the announced 20 percent tariff rate has left many in Taiwan clearly disappointed and concerned about its potential impact on exports and the economy as a whole.
Lin Bofeng, chairman of Taiwan's influential Third Wednesday business club, warned that a 20 percent U.S. tariff on Taiwanese goods, higher than the 15 percent tariff on imports from Japan and the ROK, would undoubtedly cause serious damage to Taiwan's global competitiveness. He called on the island's authorities to immediately adopt effective policies to stabilize the economy and to disclose all details of the agreements with the U.S. to determine whether they will include additional conditions.
Commenting on these concerns, Kuomintang Party Chairman Zhu Lilun called the US tariff a "major threat" to Taiwan's export industries.
"The lack of a strategic plan by the DPP authorities forces the island's businesses to act blindly, thereby undermining their trust and weakening Taiwan's competitive advantage," Zhu Lilun said.
In response, the DPP authorities said that since the two sides had not yet completed the final consultation meeting, the 20 percent tariff was still temporary and there was hope that it would be reduced before a future agreement was concluded.
Still, analysts remain skeptical. Xie Zhichuan, a commentator on current affairs in Taiwan, questioned who ultimately has the power to determine what a “temporary tariff” is. He warned that Taiwan could face undisclosed additional commitments, such as large-scale investment in the U.S., since the two sides have not yet issued a joint statement.
He said that unless more details are released, the situation in Taiwan's industry, especially for small businesses in central and southern Taiwan, will only get worse. -0-
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