How Trump’s Tariffs Will Affect US-Taiwan Relations

The Hudson Institute convened a panel discussion featuring experts in economics, trade, and Indo-Pacific strategy to analyze the potential impact of tariffs on Taiwan and the broader region. The discussion covered Taiwan's unique position in the global economy, the anxieties surrounding potential tariffs from the United States, and the need for a stable business environment. Panelists explored various aspects, including how Taiwan fits into the regime for tariffing embedded Chinese content, the treatment of semiconductors, and macroeconomic considerations like currency manipulation. They also addressed Taiwan's significant trade surplus, the role of the central bank, and potential solutions such as increasing defense spending and adjusting currency policies. The panel emphasized the importance of strategic ambiguity, diplomatic engagement, and the need for Taiwan to proactively address its economic challenges while recognizing the political dimensions of trade negotiations.