Taiwan Eyes U.S. Market Amid Tariff Tempest

President Trump's temporary tariff reprieve has provided Taiwan a 90-day window to explore deeper trade ties with the U.S. Taiwan aims to leverage the large U.S. market for economic gain while maintaining stable trade relations, even amidst uncertainties surrounding U.S.-China trade tensions.

U.S. President Donald Trump's decision to pause most tariffs for 90 days opens a crucial dialogue window between Taiwan and the U.S., according to Taiwan's Foreign Minister Lin Chia-lung. The temporary rollback offers Taiwan a chance to tap into the expansive U.S. market and facilitate balanced trade growth.

The island had been bracing for a 32% tariff, which would have severely impacted its financial markets. However, the semiconductor industry, a key economic pillar, was spared. Lin emphasized Taiwan's commitment to increasing U.S. purchases and investments to mitigate its trade surplus with the United States.

Despite the tariff reprieve boosting Taiwan's stock market and major tech suppliers like TSMC and Foxconn, uncertainty looms regarding broader U.S.-China trade relations. Central bank governor Yang Chin-long noted potential risks but highlighted Taiwan's strategic holding of U.S. Treasury bonds as a monetary safeguard.

(With inputs from agencies.)