Taiwan Defends Trade, Currency Record Ahead of Possible US Tariffs 

Shipping containers are stacked in the port city of Keelung, Taiwan, 20 March 2025. (EPA)
Shipping containers are stacked in the port city of Keelung, Taiwan, 20 March 2025. (EPA)
TT

Taiwan Defends Trade, Currency Record Ahead of Possible US Tariffs 

Shipping containers are stacked in the port city of Keelung, Taiwan, 20 March 2025. (EPA)
Shipping containers are stacked in the port city of Keelung, Taiwan, 20 March 2025. (EPA)

Taiwan's central bank on Wednesday defended the island's trade and currency record ahead of possible tariffs from US President Donald Trump, saying the high current account surplus was a structural problem and Washington understood that.

Trump officials, including Treasury Secretary Scott Bessent, have said that much of the reciprocal tariff focus, to be announced on April 2, will be on 15 countries that have the highest trade surpluses, which Bessent has referred to as the "Dirty 15."

They did not name these, but according to US Census Bureau data, Taiwan is one of those 15 with the largest trade surpluses with the United States, along with countries like China and South Korea plus the European Union.

In a report to lawmakers, Taiwan's central bank noted that the island's current account surplus last year was 14.3% of GDP.

"It reflects the structural problem of the sharp increase in US demand for Taiwan's technological products and the expansion of our trade surplus with the United States. The US side understands this point of view," the central bank said.

Taiwan runs a large trade surplus with the United States, which surged 83% last year, with the island's exports to the US hitting a record $111.4 billion, driven by demand for high-tech products such as semiconductors, a sector Taiwan dominates.

"As Taiwan's trade surplus with the United States is relatively large, the risk of bilateral trade disputes between Taiwan and the United States must be carefully managed," the central bank said.

Taiwan has previously been put on a foreign exchange "monitoring" list by the US Treasury Department given its trade surplus and outsized current account surplus.

The central bank said its exchange rate policy aims to maintain an "orderly" foreign exchange market and financial stability, and that it never intended to gain an unfair competitive advantage in trade.

It also expressed concern about Trump's frequent economic and trade policy flip-flops and lack of clarity about his plans on tariffs in particular.

"Especially, the impact of the tariff increase policy is the most significant, which is detrimental to the growth of the global economy and may push up inflation," the central bank said.



Moroccan Utility ONEE Granted $340 Million in Loans for Energy Transition

File photo of a police officer standing near a Moroccan national flag near the main stadium during preparations for the FIFA Club World Cup in Agadir, December 10, 2013. REUTERS/Amr Abdallah Dalsh
File photo of a police officer standing near a Moroccan national flag near the main stadium during preparations for the FIFA Club World Cup in Agadir, December 10, 2013. REUTERS/Amr Abdallah Dalsh
TT

Moroccan Utility ONEE Granted $340 Million in Loans for Energy Transition

File photo of a police officer standing near a Moroccan national flag near the main stadium during preparations for the FIFA Club World Cup in Agadir, December 10, 2013. REUTERS/Amr Abdallah Dalsh
File photo of a police officer standing near a Moroccan national flag near the main stadium during preparations for the FIFA Club World Cup in Agadir, December 10, 2013. REUTERS/Amr Abdallah Dalsh

Moroccan water and power utility ONEE said it has been granted 300 million euros ($340 million) in loans from the European Investment Bank (EIB) and German state lender KfW to support integration of renewable energy into the national grid.

The financing package comprises 170 million euros from the EIB and 130 million euros from KfW, the utility said on Friday, adding that the money will be used to expand its electricity transmission network by 730km.

ONEE plans to invest $19 billion in its electricity development plan through 2030, the year Morocco will co-host the World Cup soccer tournament, together with Spain and Portugal.

The plan aims to increase installed renewable energy capacity to 56% of the country's total electricity capacity by 2027, three years ahead of the 2030 target, according to Reuters.

Currently, installed renewable energy capacity stands at 45%, or 5.5GW.

ONEE said it will add 15GW of installed electricity capacity, including 12GW from renewable sources by 2030.

Last week ONEE signed a deal with the United Arab Emirates' TAQA to build a 1,400 km high-voltage transmission line with a capacity of 3,000 megawatts linking Western Sahara’s renewable energy sites to central Morocco.

Coal still accounts for more than 70% of Morocco's energy production.

Seeking to diversify its coal-dependent energy sector, Morocco began in April a tendering process to build a liquefied natural gas terminal in the Mediterranean port of Nador.