TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) said Thursday that Taiwan can help the US achieve reindustrialization and lead in AI by leveraging its strengths in machinery and chips.

Speaking at the 80th anniversary of the Taiwan Association of Machinery Industry, Lai said US reindustrialization relies on Taiwan’s machinery sector, while its AI ambitions depend on Taiwan’s semiconductor, ICT, and electronic component industries, per CNA.

Lai said his administration is pushing for a tariff agreement with Washington to reduce reciprocal tariffs and secure favorable treatment under Section 232 measures, aiming to deepen cooperation and boost Taiwan’s global competitiveness.

Acknowledging headwinds from geopolitical uncertainty, Lai recalled visiting Taichung Industrial Park with Premier Cho Jung-tai (卓榮泰) earlier this year to hear manufacturers’ concerns.

To support domestic industries, Lai said the government has rolled out a NT$93 billion (US$2.9 billion) tariff support package, offering financial aid, market expansion initiatives, and employment protection to help firms adapt to global shifts while maintaining steady growth.

On defense, Lai said spending will reach 3.32% of GDP in 2026 and is projected to rise to 5% by 2030, with a greater focus on self-reliance and local production. He called on the machinery industry to contribute to national defense, describing the sector as a pillar of the economy.