White House Photo: VCG

The White House's announcement of a 20 percent tariff on Taiwan region - higher than the 15 percent imposed on Japan and South Korea - has provoked intense debate in the island. Local media even ran headlines likening it to "squeezing a lemon," while netizens mocked the rate as a "success" of the Democratic Progressive Party (DPP)'s kowtowing to the US. Others voiced deeper concern over its impact on the stock market and Taiwan island's competitiveness.

The Taiwan region's exports to the US will be subject to a 20 percent tariff starting August 7, according to an executive order signed by US President Donald Trump on Thursday. The 20 percent levy was higher than the tariffs imposed on Japan, South Korea and the European Union (15 percent), as well as those on the Philippines (19 percent).

The announcement came one day before the Friday deadline set by the US for countries to reach agreements with the US on tariffs.

Following the tariff announcement, on Friday, the Taiwan Stock Exchange opened at 23,318.37, down 224.15 points, with Taiwan Semiconductor Manufacturing Co (TSMC) opening at NT$1,145, a drop of NT$15.

Media in the Taiwan region gave a wide coverage on the tariff rate and some cited a Politico report saying that Taiwan was "squeezed like a lemon."

A Politico report on July 30 said that before the Friday deadline, "US trade negotiators are squeezing Taiwan like a lemon," said a person familiar with trade talks between the US and the island. "The US wants it all in terms of access to Taiwan's markets," according to the report.

Early on PTT, a media platform in the Taiwan island, threads about Taiwan's new 20 percent US tariff rate went viral, with users opening posts sarcastically calling it a "great success" and others fretting over the stock market and lost competitiveness, according to udn.com.

Some netizens mocked comparisons - "20 percent vs. Japan/Korea's 15 percent" - and warned orders would shift to rivals.

Taipei Mayor Chiang Wan-an was cited by local media as saying on Friday that the tariff rate being higher than Japan's and Korea's is a dereliction of the island authorities' duty. He added that the government should be uniting the people, but regional leader Lai and the DPP have instead launched a mass recall campaign, focusing on internal infighting.

A 20 percent "reciprocal tariff" combined with a 12 percent exchange-rate loss has gutted Taiwan firms' competitiveness and resulted in heavy losses, said Chiang.

Global Times