Taiwan's central bank warned Wednesday that it sees danger in trade policies proposed by the new administration of U.S. President-elect Donald Trump.
In a report presented to parliament before Governor Yang Chin-long answered questions from lawmakers on Thursday, the central bank said if Mr Trump keeps his policy promises, it would lead to an escalation of trade conflicts around the world and stifle competition in the technology industry.
“The global trade map is being redrawn,” the report said, “and will likely affect Taiwan’s export dynamics in the future.”
The central bank said the aggressive tariff policy promised by Trump during his election campaign would be the most impactful trade policy of the incoming administration, if implemented.
The threat by Mr. Trump, who takes office in January, to impose 60% tariffs on US imports of Chinese goods poses major risks to the growth of China, the world's second largest economy and largest trading partner. Taiwan.
Mr Trump also floated the idea of a universal 10% tariff on all US imports.
Taiwan was the target of Trump's rhetoric during the 2024 campaign. Mr Trump suggested that Taiwan, threatened by China which claims the island as its own territory, should pay for US protection and accused Taiwan to poach the American semiconductor industry.
“New US trade policies under Trump could impact Taiwan's financial outlook through multiple channels,” the report said.
Last year, the United States ran a $48 billion trade deficit with Taiwan, a major producer of semiconductors for customers including tech giants such as Apple and Nvidia.
The central bank said it would continue to monitor the implementation of key changes in US policies, and gradually adjust the outlook for inflation and the economy, while responding with appropriate monetary policy.
Taiwan Deputy Prime Minister Cheng Li-chun will lead a working group on future trade and technology cooperation with the new US government.
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