By Ben Blanchard and Faith Hung
TAIPEI (Reuters) -Taiwan state-backed bodies could over the next decade buy an extra $200 billion from the United States and bump up the percentage of LNG it gets from the county by one-third to help narrow the trade deficit, the economy minister said on Thursday.
Taiwan President Lai Ching-te on Sunday pledged to seek a zero tariff regime with the United States and buy more from and invest more in the country, and said that Taipei would not retaliate in response to U.S. tariffs – now put on pause by President Donald Trump.
Taiwan had been due to be hit with a 32% tariff, sending its stock market plummeting, though the key semiconductor industry was excluded.
Taking lawmakers’ questions in parliament about the government’s response to the tariffs, Economy Minister Kuo Jyh-huei said the plan being discussed was some $200 billion in purchases over the coming decade by the government and state-run companies.
That does not include purchases by private companies, he added.
Asked about raising the proportion of Taiwan’s imports of liquefied natural gas (LNG) from the United States from 10% to 30% of the total, Kuo said that was the “direction” being eyed.
Most of Taiwan’s LNG now comes from Australia and Qatar.
Speaking to reporters at parliament, Taiwan Foreign Minister Lin Chia-lung said there was now breathing room to have more detailed and in-depth talks with the United States.
“We hope to take advantage of the huge U.S. market, their excellent technology capital and talent, to form a Taiwan-U.S. coalition, a joint fleet approach,” he added.
The United States has received Taiwan’s trade proposals “and has also responded”, Lin said, without giving details.
In a statement after a weekly cabinet meeting, Taiwan Premier Cho Jung-tai said the government would seize the opportunity to have “direct and effective” talks with the United States.
On Thursday, Taiwan’s benchmark stock index followed global markets higher in response to the tariff reprieve, rising 9.3%, a record gain, having plummeted the previous three trading sessions.
Taipei-listed shares in TSMC, the world’s largest contract chipmaker, as well as those for iPhone maker Foxconn, rebounded close to 10%. Both are major suppliers to U.S. companies, including Apple and Nvidia.
However, speaking at a separate parliamentary committee session, Taiwan central bank governor Yang Chin-long said there remained much uncertainty for markets and the world economy about Trump’s tariffs.
But Taiwan continues to hold more than 80% of its foreign exchange reserves in U.S. Treasury bonds, he added.
“At present more than 80% is ideal, and we will assess whether to increase it,” Yang said.
(Reporting by Ben Blanchard and Faith Hung; Editing by Gerry Doyle)
