Taiwanese President Lai Ching-te described recent trade tensions with the United States as “friendly frictions” during a speech on Tuesday. He expressed confidence that ongoing tariff negotiations will lead to a positive resolution and highlighted the strong partnership between the two countries.
Last month, the US imposed a 32% tariff on Taiwanese imports amid broader trade disputes. Both sides later agreed to lower the tariff temporarily to 10% for 90 days to allow negotiations to proceed smoothly. Officials held initial talks last month and plan a second round of discussions in the coming weeks.
President Lai stressed Taiwan’s dedication to resolving trade disagreements through open dialogue and mutual trust. “We are committed to working with our partners to find common ground and protect shared economic interests,” Lai said.
Taiwan Balances Security Amid Rising Regional Tensions
Alongside trade issues, President Lai addressed Taiwan’s security challenges amid increasing military pressure from China. He pledged to strengthen Taiwan’s defense capabilities through both domestic innovation and foreign arms purchases.
“Taiwan will prepare to avoid war and secure peace,” Lai said. He vowed to stand firmly with allies and maintain a credible deterrent to protect the island’s autonomy. Despite ongoing tensions, Lai expressed openness to future cooperation with Beijing if it is based on “mutual dignity and respect.”
Lai praised the US for its continued support of Taiwan’s defense needs, citing the legal obligations and long-standing cooperation between the two nations.
Strong Foreign Investment Drives Taiwan’s Economy
President Lai also highlighted Taiwan’s success in attracting foreign investment, pointing to Nvidia’s recent announcement of a new artificial intelligence (AI) supercomputer project in Taipei. The initiative includes partnerships with Foxconn, TSMC, and the Taiwanese government.
Nvidia CEO Jensen Huang confirmed the company’s long-term commitment to Taiwan’s technology sector. Taiwan’s economy depends heavily on semiconductor manufacturing, green technology, and advanced electronics.
Taiwanese companies are also increasing their investments in the US. The island’s top chipmaker, TSMC, pledged $100 billion for new US projects following the tariff dispute with the Trump administration. This builds on a previous $65 billion investment plan for factories in Arizona, one of which is already operational.
Despite these economic advances, President Lai faced domestic opposition. His proposal to remove tariffs on US goods in exchange for trade benefits sparked protests from local farmers. Last week, agricultural workers demonstrated against increased US imports, fearing reduced protections for Taiwan’s farming industry.
Farmers argue that the tariff cuts could harm local agriculture, which has long depended on protective measures to compete with imports. Lai acknowledged these concerns but stressed the importance of balancing trade openness with safeguarding domestic interests.