Trump's Tariff Tango: Navigating Trade Wars and Taiwan's Economic Crossroads

Expert Analysis: US Tariff Exemptions and the Implications for Taiwan's Economic Strategy.

The United States' recent decision to temporarily exempt tariffs on certain products, including mobile phones and computers, is being interpreted as a pragmatic adjustment by the former US President, Donald Trump, a move described by the physician 沈政男 (Shen Zhengnan) as a concession to reality, while still attempting to save face.

However, this shift poses challenges for Taiwan. While Premier 卓榮泰 (Zhuo Rongtai) has emphasized reducing economic dependence on China, the concentration of trade on the US market presents its own risks. The specter of potential US tariffs creates a precarious situation for Taiwan's economy, potentially leading to significant imbalances.

Specifically, the US's tariff exemptions on products like mobile phones and computers – items largely imported from China, its biggest import partner – reflect the impracticality of imposing the previously proposed 145% tariffs. This exemption, experts argue, is a strategy to mitigate the impact on US consumer prices and prevent economic downturns.