TAIPEI (Taiwan News) — Taiwan's Central Bank on Wednesday (Nov. 13) warned about the dangers ahead from US President-elect Donald Trump’s proposed trade policies.
The Central Bank told the legislature that if Trump follows through on aggressive tariff policies, international trade conflicts would intensify, and competition could be stifled in the tech industry. According to its report, “The map of global trade is being redrawn … and will likely affect Taiwan's export momentum in the future,” per CNA.
The special report was shared with the Legislative Yuan before Central Bank Governor Yang Chin-long (楊金龍) took questions from legislators.
"The new US trade policies under Trump could impact Taiwan's financial outlook through multiple channels," the report said.
Trump said during his campaign to slap a 60% tariff on Chinese goods and a 10% tariff on all US imports. Yang said Trump may impose high tariffs on products such as lithium batteries or the solar industry, but for consumer goods, the US is very dependent on China.
In 2023, the US ran a US$48 billion (NT$1.56 trillion) trade deficit in goods with Taiwan, prompting concerns from legislators who think Trump could target Taiwan. Yang said Taiwan could reduce its trade surplus with the US by expanding its energy, agricultural, and military purchases, including TSMC and manufacturers’ investments in the US.
Yang pointed out that US-Taiwan trade is mutually beneficial, because the US’ strength is design, while Taiwan's is advanced manufacturing. He added exports to the US are largely information and communication products, which the US needs Taiwan for.
Premier Cho Jung-tai (卓榮泰) said as Trump forms his new administration, Taiwan is taking proactive steps to respond. Deputy Premier Cheng Li-chun (鄭麗君) has established a task force to strengthen cooperation with the US government in trade, defense, and technology.
Meanwhile, the Central Bank said it will monitor changes in the US and adjust the economic and inflation outlook and subsequent monetary policies.