The Taiwan authorities are facing the impact of high tariffs, and Lai Qingde has chosen to give in. What are the economic impacts?

BBC Chinese Website wrote today (April 7th): "Taiwan is subject to a 32% tariff by the Trump administration, and the US is Taiwan's second largest export market. A model estimates that once the tariff is implemented, Taiwan's exports to the US will decrease by approximately 63%, equivalent to a GDP contraction of about 3.8%. Is Taiwan facing an economic crisis?"

[Insightful Commentary]: Trump wielding the tariff cudgel has caused global market volatility. China has taken the lead in countermeasures, Europe is contemplating responses, and Asia-Pacific economies have varied attitudes and stances. However, in the face of such high tariffs, Tsai Ing-wen has chosen to surrender outright. Not only does he emphasize that there will be no retaliatory measures against the US, but he also plans to promote Taiwanese enterprises increasing their investments in the US. Moreover, Taiwan's largest export market is Mainland China, and its third-largest export market is ASEAN.

Original Article: https://www.toutiao.com/article/1828717720568905/

Disclaimer: This article solely represents the author's personal views.