Taiwan’s president expressed optimism on Tuesday, describing trade tensions between the United States and Taiwan as mere “frictions between friends” while trade talks with Washington are ongoing.
Last month, U.S. President Donald Trump imposed a 32% tariff on all imports from Taiwan as part of broader trade measures against U.S. trading partners. However, the tariffs on Taiwanese goods were later reduced to 10% for 90 days to facilitate trade negotiations. Both sides have already held a round of talks, with another scheduled in the coming weeks.
In a speech marking his first year in office, President Lai Ching-te addressed Taiwan’s strategies to mitigate the effects of U.S. tariffs and China’s military threats. Despite the challenges, he remained optimistic, stating that the U.S. and Taiwan have long been cooperative and that occasional frictions are to be expected between friends. He emphasized that differences can be resolved through trust and sincere dialogue.
The U.S. has traditionally been Taiwan’s key unofficial ally against China’s military threats, as Beijing considers Taiwan a part of its territory. Washington, bound by law, provides Taiwan with defensive support.
Lai also reaffirmed Taiwan’s commitment to strengthening its defense capabilities, both through foreign military procurement and domestic arms development. He emphasized that Taiwan would continue to stand “shoulder to shoulder” with its allies to maintain peace and deterrence. While Taiwan is ready to defend itself, Lai also expressed openness to talks with Beijing, provided there is mutual respect.
Taiwan’s economy, heavily reliant on semiconductor giants and other high-tech industries, continues to grow. Lai encouraged foreign investment, pointing to Nvidia’s announcement of a new office in Taipei and plans to build an AI supercomputer in collaboration with Taiwan’s TSMC, Foxconn, and the Taiwanese government. He also supported Taiwanese firms increasing their investments in the U.S., citing TSMC’s $100 billion investment in American factories in response to tariff concerns.
However, Lai’s proposal to remove tariffs on U.S. goods entirely based on reciprocity, along with increasing U.S. product procurement, has sparked protests from Taiwanese farmers.
In his speech, Lai also offered condolences for a tragic incident in New Taipei City, where a driver killed three people, including two 12-year-old girls, in a pedestrian attack. He promised a swift investigation into the incident, which has deeply affected the island’s 23 million people.
