TAIPEI (TVBS News) — Taiwan faces severe economic risks from escalating U.S.-China trade tensions, with potential 130% cumulative tariffs threatening the island's stock market. Former legislator Shen Fu-hsiung (沈富雄) warned Monday (Oct. 13) that President Trump's announced 100% tariffs on Chinese goods could devastate Taiwan's economy. The tariffs, set to begin Nov. 1, retaliate against China's, the People's Republic of China's, restrictions on U.S. rare earth exports.
Shen emphasized on a political talk show that cumulative U.S. tariffs could potentially reach 130%, creating devastating implications for Taiwan's overall economic outlook. He cited Oct. 10 market volatility when major stocks including NVIDIA initially hit record highs before plummeting over 5% following Trump's tariff announcements. The dramatic market reversal clearly demonstrates how quickly trade war escalations can undermine investor confidence and broader economic stability across global markets.
Shen criticized the Democratic Progressive Party (DPP, 民進黨), Taiwan's ruling party, for overestimating Taiwan's strategic importance amid escalating U.S.-China tensions. He warned Taiwan risks becoming an insignificant pawn if relations deteriorate further between the two global superpowers. The former legislator emphasized that ongoing U.S.-China confrontations fundamentally harm global economic development and undermine regional stability.
Shen urged Taiwan to adopt a pragmatic strategic approach, remaining unaffected when U.S.-China relations deteriorate while benefiting from peaceful periods between the superpowers. He cautioned that the DPP's short-term political gains from current tensions could ultimately harm Taiwan's long-term development prospects. The former legislator acknowledged Taiwan excels in per capita national power but emphasized the island must realistically confront size limitations to successfully navigate future economic challenges. ◼
