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)
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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.



OPEC: Global Oil Demand Forecasts Unchanged

A model of oil rigs in front of the OPEC logo (Reuters) 
A model of oil rigs in front of the OPEC logo (Reuters) 
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OPEC: Global Oil Demand Forecasts Unchanged

A model of oil rigs in front of the OPEC logo (Reuters) 
A model of oil rigs in front of the OPEC logo (Reuters) 

OPEC said the global economy may perform better than expected in the second half of the year despite trade conflicts and refineries' crude intake would remain elevated to meet the uptick in summer travel, helping to support the demand outlook.

In a monthly report on Tuesday, the Organization of the Petroleum Exporting Countries left its forecasts for global oil demand growth unchanged in 2025 and 2026 after reductions in April, saying the economic outlook was robust, Reuters reported.

“Refinery intakes globally, and particularly in the US, are expected to keep throughputs elevated to meet the seasonal uptick in transport fuel demand, especially that of gasoline, jet/kerosene and residual fuel,” OPEC said.

Global refinery crude intake posted a sharp increase of 2.1 million bpd in June from May as refiners returned from maintenance, a sign of a stronger oil market, OPEC said in the report, adding that throughput was likely to stay high.

“India, China, and Brazil are outperforming expectations so far, while the United States and the Eurozone are experiencing a continued rebound from last year,” OPEC said in the report.

“With this, the second-half 2025 economic growth may turn out better than currently expected,” it added.

A solid economy shrugging off trade conflicts would make it easier for OPEC+, which groups OPEC plus Russia and other allies, to proceed with its plan to pump more barrels to regain market share after years of cuts aimed at supporting the market.

Brent crude was steady after OPEC published the report, trading close to $70 a barrel.

OPEC's report also showed that in June OPEC+ pumped 41.56 million bpd, up 349,000 bpd from May. This is slightly less than the 411,000 bpd hike called for by the group's increase in its June quotas.

The actual hike was smaller than the headline increase in quotas partly because some nations, such as Iraq, cut output as part of a pledge to make further reductions for earlier pumping above targets.

Still, output in Kazakhstan, which is under pressure to comply with OPEC+ quotas, rose last month after slightly falling in May and remained above the country's quota.

According to OPEC, Kazakhstan's oil production rose by 64,000 bpd in June to 1.847 million bpd.