Taipei: Taiwan central bank chief Yang Chin-lung addressed lawmakers on Thursday regarding the implications of Donald Trump's election on trade policies and economic stability. During a session at the Legislature's Finance Committee, Yang discussed a Central Bank report that assessed the potential economic impact of Trump's proposed policies and strategized on Taiwan's response. According to Focus Taiwan, Yang faced inquiries about Taiwan's trade surplus, which reached a US$48 billion surplus in goods for 2023, and how it might attract Trump's scrutiny. Yang emphasized that Taiwan's export of ICT products to the U.S. fosters a mutually beneficial trade relationship, with the U.S. excelling in product design and Taiwan in manufacturing. Yang proposed increasing purchases of American energy, agricultural goods, and military products to address the trade imbalance, alongside investments by Taiwanese firms like TSMC in the U.S. Yang also addressed the issue of tariffs, noting the average tariffs imposed by the U.S. on Chinese and other countries' exports under Trump's first term and President Joe Biden. He expressed skepticism about Trump's proposals to significantly raise tariffs, suggesting that such measures might be strategic threats rather than feasible actions. While 60 percent tariffs might be possible for certain products, Yang indicated they are unlikely for consumer goods due to U.S. dependency on Chinese exports. Yang acknowledged the challenges posed by Trump's election, highlighting the unpredictability of his policies and the resulting uncertainty in financial markets. He noted the importance of monitoring the new U.S. administration and refraining from speculation, given the unclear scope and timing of Trump's policies.
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