Trump Tariffs Reshape Supply Chain, US Expert: Taiwan Becomes Key Technology Partner

The North American Taiwanese Chamber of Commerce today hosted the 2026 "New Framework for US-Taiwan Economic and Trade Agreement: Opportunities, Challenges, Strategies for Taiwanese Enterprises Investing in the US, and New Layout of Non-Red Supply Chains" forum. Art Estopinan, US Senior Director of International and Public Affairs, delivered a speech titled "Taiwan in the Trump Era US: Key Factors Enterprises Cannot Ignore." Estopinan stated that current global trade rules are being rewritten, and policy decisions, corporate layouts, and capital flows are reshaping the competitive landscape at an unprecedented speed. He stated that after US President Trump returns to the White House in 2025, he will use tariffs as a primary economic policy tool, imposing tariffs exceeding 100% on some Chinese products, almost freezing bilateral trade. Against this backdrop, the amount of US imports from Taiwan has grown significantly, with Taiwan's exports to the US increasing by nearly 60% within one year, indicating a shift in the industrial chain towards Taiwan. Estopinan emphasized that Taiwan's position in the global supply chain is irreplaceable, controlling over 90% of advanced semiconductor production, which is key to artificial intelligence, defense, and high-tech development. He mentioned that TSMC's investment in Arizona, USA, amounts to US$165 billion, symbolizing a shift in global manufacturing centers and investment directions. He pointed out that the US Congress reached bipartisan consensus in 2025, actively promoting legislation to reduce double taxation for Taiwanese enterprises and encouraging manufacturing to return to the US. In addition, the US and Taiwan signed a Reciprocal Trade Agreement in 2026, which, in addition to reducing tariffs, also established long-term procurement cooperation in areas such as energy, aviation, and infrastructure. In terms of industrial layout, Estopinan pointed out that Taiwanese enterprises have formed a dual-track model with Mexico as the mass production base and the US as the high-end manufacturing center. He stated that in addition to Arizona, Texas and the southeastern US are also becoming important areas for US-Taiwan industrial cooperation. Compared to countries like Vietnam and India, which mostly compete in assembly manufacturing, Estopinan believes that Taiwan provides core technologies and key inputs, operating at a different level of competition. He stated that US-Taiwan relations are now driven by capital, technology, and industrial strategy, and Taiwanese enterprises should continue to strengthen their technological capabilities and trust foundation to maintain their competitive advantage. (Editor: Pan Yi-Ching) 1150407