Taiwan’s Economics Minister Kuo Jyh-huei remains optimistic about the island’s economic future despite President-elect Trump’s proposed tariffs. He considers the impact on Taiwan to be limited, while recognizing the challenges posed to firms operating in China. Kuo believes that job opportunities from TSMC will ensure continued U.S. support through the CHIPS Act, highlighting a complementary relationship in the semiconductor industry. Taiwan plans to strengthen trade discussions with the incoming Trump administration, with strong foundations already established.
In a recent address, Taiwan’s Economics Minister Kuo Jyh-huei exuded confidence regarding the island’s economic prospects despite proposed tariffs from U.S. President-elect Donald Trump. Kuo downplayed the significance of Trump’s suggested 10 percent tariff on all imports, asserting that it would not significantly impact Taiwan. However, he acknowledged that Trump’s suggested 60 percent tariff on Chinese imports could more adversely affect Taiwanese businesses operating in China. On the topic of Trump’s controversial remarks about Taiwan paying “protection fees,” Kuo remained optimistic, highlighting the job creation potential of Taiwan Semiconductor Manufacturing Company (TSMC). He argued that this would secure ongoing support from the U.S. under the CHIPS Act, noting, “The U.S. had ‘put up billions of dollars for rich companies… all you had to do was charge them tariffs'” – Trump. Kuo pointed out that many analysts recognize a complementary relationship between Taiwan and the USA in the semiconductor supply chain, emphasizing that advanced chips depend heavily on Taiwan’s capabilities. Kuo further mentioned plans to attract Taiwanese businesses back from China in light of Trump’s policies and expressed readiness to actively engage in trade discussions with Trump’s incoming administration. Cynthia Kiang from the International Trade Administration echoed this sentiment, stating that Taiwan had already made foundational trade agreements with the U.S., despite requiring Congressional approval for implementation. The upcoming months as Trump takes office will be pivotal for Taiwan as it seeks to navigate these uncertainties while strengthening its trade ties with the U.S.
The context of these discussions stems from the geopolitical tensions exacerbated by the U.S.-China trade war, which has seen tariffs become a key weapon. President-elect Donald Trump’s remarks about tariffs and subsidies highlighted an ongoing debate about trade practices and economic fairness. Taiwan, with its significant role in the global semiconductor market, stands at a crossroads and must carefully maneuver through Trump’s policy implications while fostering domestic growth and foreign relations. The CHIPS Act represents a significant financial commitment to bolstering the semiconductor industry, which forms the backbone of Taiwan’s economy, particularly with the presence of TSMC.
Taiwan’s Economics Minister Kuo Jyh-huei struck a hopeful note regarding the future of Taiwan’s economy, downplaying possible disruptions from U.S. tariffs. With the foundation laid by TSMC’s local advantages and ongoing trade negotiations with the U.S., Taiwan appears to be proactively crafting a resilient response to the evolving political landscape under Trump. As the nation adapts, it signifies a commitment to robust economic collaboration and innovation moving forward.
Original Source: focustaiwan.tw
