Taipei: Taiwan has become an indispensable partner in global supply chains as U.S. tariffs on China accelerate a major economic realignment, an American public affairs expert said Tuesday. Speaking at a Taiwan-U.S. business forum in Taipei, Arthur Estopinan highlighted how global trade rules are being "rewritten," with policy decisions, corporate strategies, and capital flows reshaping supply chains at an unprecedented pace.
According to Focus Taiwan, Estopinan emphasized that the U.S.-Taiwan relationship is now defined by capital, technology, and shared economic strategy rather than diplomacy or security. He noted that following the return of U.S. President Donald Trump to office in 2025, tariffs exceeding 100 percent were imposed on some Chinese goods. This move effectively froze much of the bilateral trade between the U.S. and China, prompting companies to rapidly reconfigure their supply chains.
Amid this shift, U.S. imports from Taiwan surged significantly, with Taiwan's exports to the United States rising nearly 60 percent in one year. Estopinan pointed out that Taiwan's production of over 90 percent of the world's most advanced semiconductors makes it critical to industries such as artificial intelligence, defense, and high-tech manufacturing.
He further explained that Taiwanese firms have expanded their production across North America, combining mass manufacturing in Mexico with high-end operations in the U.S. Estopinan cited Taiwan Semiconductor Manufacturing Co.'s US$165 billion investment in Arizona as indicative of the direction of global production and long-term economic alignment.
Additionally, he highlighted bipartisan support in Washington for strengthening economic ties with Taiwan, including efforts to reduce double taxation and encourage investment. Estopinan concluded by noting that Taiwan differs from countries such as Vietnam and India by providing core technologies rather than competing as a low-cost assembly base.