TAIPEI (TVBS News) — As the clock ticks down on U.S. President Donald Trump's 90-day tariff grace period, Taiwan's semiconductor and technology industries may weather the economic storm better than initially feared, according to experts gathered at a high-profile conference that kicked off in Taipei on Wednesday (June 18). The two-day "Taiwan Future Summit" (台灣大未來國際高峰會), organized by Business Today (今周刊) magazine, convened leading economists, government officials and industry leaders to strategize amid mounting trade tensions. Kimberly Clausing, former deputy assistant secretary for Tax Analysis in the U.S. Department of the Treasury, delivered a message that balanced caution with optimism about Taiwan's unique position in global supply chains.
"There's a huge amount of demand for the high-tech products that Taiwan makes. The advent of AI will only increase that demand," Clausing told TVBS News on the sidelines of the international conference. "Even if Taiwan is tariffed, I think even at a higher price, Taiwan's products will be in high demand." Her assessment reflects the critical role Taiwanese manufacturers play in producing advanced semiconductors that power everything from smartphones to artificial intelligence systems, a position that gives the island nation significant leverage despite its complex geopolitical situation.
Taiwan's Export Strength Amid Global Uncertainty
Clausing pointed to Taiwan's remarkable export resilience during the first quarter of 2025 as evidence of its economic durability. "In the early part of this year, Taiwan's exports did very well, and that's partly because Taiwan's comparative advantage is situated in a very advantageous place for the modern economy," she said. The economist emphasized that Taiwan's dominance in semiconductor manufacturing — particularly in advanced chips required for artificial intelligence applications — positions the island to maintain market share even if American tariffs increase prices for U.S. consumers.
Despite this optimism, Clausing warned attendees about Taiwan's economic vulnerability to broader American consumer trends. "Taiwan sells about 14% of GDP to the United States. If the United States is doing worse, it will buy fewer things," she explained, highlighting the ripple effects of potential U.S. economic contraction. Her analysis took a sharper tone when addressing the fundamental flaws in aggressive protectionist policies. A "Trumpian approach" of imposing "huge tariffs," she cautioned, risks making "the U.S. market isolated from the rest of the world" while failing to achieve its stated economic objectives.
Diplomatic Strategy Emerges
While economic analysis dominated much of the summit, practical diplomatic strategy emerged as equally crucial. Hsieh Chin-ho (謝金河), chairman of Business Today Magazine and an influential voice in Taiwan's business community, revealed he had counseled Taiwan's highest levels of government to exercise extreme caution. "Currently, we don't know Trump's answer and bottom line," Hsieh explained, recounting conversations with Taiwan's presidential office. "First, don't speak harshly or talk back to Trump — don't provoke him. So, the first approach is to be gentle, respectful, and modest." His advice reflects a growing consensus among Taiwanese officials that confrontational rhetoric would likely backfire.
Hsieh's strategic roadmap extends beyond merely avoiding provocation. He outlined a three-part approach beginning with Taiwan proactively reviewing its own trade barriers. "Express our willingness to make our best effort to review whether there are any unreasonable tariffs on the U.S.," he advised, suggesting Taiwan must demonstrate good faith. The second element focuses on addressing what Trump has repeatedly identified as his primary concern — Taiwan's substantial trade surplus with the United States, which Trump calculates at US$73.9 billion (approximately NT$2.18 trillion). "We should promise the U.S. that we will make our best effort to resolve the current trade surplus issue, so we need to strengthen our purchases from the U.S.," Hsieh emphasized.
The summit concluded with a sobering recognition that Taiwan faces a precarious balancing act in the months ahead. Industry leaders must simultaneously prepare for potential tariff impacts while government officials craft a diplomatic response that acknowledges American concerns without sacrificing Taiwan's economic interests. Analysts noted that Taiwan's irreplaceable role in producing advanced semiconductors for artificial intelligence applications provides a buffer that few other economies enjoy when facing trade pressures. The island's economic resilience will ultimately depend on this unique leverage point and its government's ability to navigate the volatile political currents emanating from Washington with both strategic patience and tactical flexibility. ◼
