Following communications with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, U.S. President Donald Trump has agreed to postpone the implementation of 25% tariffs on Canadian and Mexican imports for 30 days. With the threat of chip tariffs hanging over Taiwan, National Central University's Research Center for Taiwan Economic Development Director Dachrahn Wu (吳大任) said that Taiwan must quickly consider how to negotiate matters moving forward.
Wu says the leaders of both countries were willing to make concessions and take action to deal with drug trafficking and illegal immigration at their borders with the U.S. He highlighted how Trudeau was also prepared to retaliate with equivalent tariffs on U.S. goods.
The 10% tariff on China is in effect as of Tuesday. However, Trump has indicated that he intends to start a dialogue with China soon, threatening further increases in tariffs if no agreement is reached.
As for Taiwan, Wu says that Trump has mentioned on several occasions now his intent to impose import tariffs on Taiwanese computer chips and semiconductors, and that the government must consider which other U.S. industries are suitable for Taiwanese investment. He noted that since Taiwan’s exports are mainly in high-tech industries supported by AI, and that traditional industries are in decline, it could be feasible to invest in the petrochemical industry.