Rudolph Angler In his anniversary speech on Tuesday, Taiwan’s President Lai Ching-te described recent US trade tariffs as “friendly friction” and expressed optimism about ongoing negotiations to ease tensions. Last month, the Trump administration imposed 32% tariffs on Taiwanese imports as part of a wider trade strategy. Both governments have since agreed to reduce these tariffs to 10% for 90 days while continuing talks to find a lasting solution.
Officials from Taiwan and the United States have completed an initial round of discussions and plan to resume negotiations soon. President Lai emphasized that trust and open dialogue remain the best path to resolving trade differences. “We are confident that both sides will reach mutual understanding through steady negotiation,” he said.
Taiwan Strengthens Defense Amid Regional Tensions
President Lai also outlined plans to bolster Taiwan’s defense capabilities during his speech. He promised to expand the island’s military strength through foreign arms purchases and local weapons development. Lai reaffirmed Taiwan’s commitment to working with allies to create a credible deterrent against threats from China.
“Our goal is to avoid war through readiness and firm resolve,” Lai told citizens. Despite ongoing tensions, he welcomed continued talks with China, emphasizing cooperation based on mutual respect and dignity. He underscored Taiwan’s aim to maintain peaceful relations without compromising its democratic values.
Although the US does not have formal diplomatic ties with Taiwan, it remains Taiwan’s most reliable defense partner under American law, providing essential support in a volatile regional environment.
Tech Partnerships Bolster Taiwan’s Economy
President Lai highlighted Taiwan’s leading role in semiconductors, electronics, and green technologies as key drivers of the island’s economic strength. He praised Nvidia’s recent announcement to build an AI supercomputer in partnership with Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn. Nvidia also opened a new office in northern Taipei to expand its operations in the region.
Lai encouraged greater foreign investment and supported Taiwanese businesses expanding into the United States. In response to tariff pressures, TSMC unveiled a new $100 billion investment plan in the US. The company had already committed $65 billion to build three chip factories in Arizona, one of which has started production.
Domestic Backlash Over Tariff Reduction Proposal
However, Lai’s suggestion to remove all tariffs on US imports sparked protests among Taiwanese farmers. The agricultural community demanded fair treatment and warned that further concessions could harm domestic farming industries. Farmers voiced concerns that opening markets too widely to US goods might jeopardize local livelihoods.