TAIPEI (Taiwan News) — Former US Treasury official Kimberly Clausing last week criticized former President Donald Trump’s trade policies as self-defeating, while Taiwanese trade experts have been emphasizing the importance of calm and strategy in navigating global supply chain challenges.

Speaking at the Taiwan Future Summit in Taipei, Clausing’s keynote focused on Washington’s turn toward economic isolationism, its ballooning fiscal deficits, and retreat from global cooperation, according to Business Today.

Clausing cited Trump’s tariff war with China as a prime example of counterproductive policy. Though intended to target China, she said, the tariffs have largely harmed US consumers. Studies show that American households now pay an additional NT$58,000 (US$2,000) per year due to tariff-related price hikes—more than double the benefits they received from Trump-era tax cuts, she noted.

She emphasized that while Taiwan’s exposure to US tariffs is relatively limited—only 14% of its exports go to the US—its diversified supply chains have helped maintain resilience. In contrast, she said the US is experiencing elevated inflation, disrupted logistics, and declining productivity, while China has absorbed the impact more effectively.

Clausing warned that with US national debt projected to reach 120% of GDP, mounting pressure will fall on the Federal Reserve. She called for renewed international coordination on trade, carbon pricing, and tax fairness as essential steps toward long-term economic stability.

Adding legal context to the policy debate, KPMG Taiwan's Chen Tsai-huang (陳彩凰) referenced a recent US Court of International Trade ruling that declared Trump’s tariffs illegal. The court found the administration had overstepped its authority, infringing on Congress’s constitutional power over trade.

Although the White House has appealed the decision, citing national security and industrial competitiveness, Chen said the ruling exposes deeper uncertainty for companies caught in geopolitical crossfire. “There is no clear line anymore between policy, politics, and law,” she said.

Chen proposed a three-stage strategy for managing tariff exposure. In the short term, companies should audit existing transactions and seek exemptions. Over the medium term, they should consider tariff reclassification and conduct compliance reviews. In the long term, she said firms must redesign supply chains to align with frameworks like the United States-Mexico-Canada Agreement and reduce reliance on single markets.

She urged companies to remain calm. “Don’t panic or rush to relocate,” she said, noting that many Taiwanese firms have already developed multi-route supply networks. Instead, she framed the current situation as a test of corporate maturity.