The Trump administration has repeatedly imposed tariffs in an effort to reshape U.S. economic and industrial development. Shu-Fei Yang, Deputy Director of the Regional Development Study Center at the Chung-Hua Institution for Economic Research (CIER), said Trump’s tariffs have already caused structural changes with long-term implications. Taiwan-U.S. economic and trade relations have shifted from being market-driven to strategically driven. In the past, market mechanisms largely guided bilateral economic and trade cooperation. Companies developed their global footprints based on costs, efficiency, and market demand. Strategic considerations now play a greater role. Tariffs, subsidies, export controls, and investment policies are prompting companies to restructure their supply chains.
The CIER and the Chinese National Federation of Industries jointly held the “2026 International Economic and Trade Opportunities and Challenges Conference” on August 12, 2026, to discuss recent developments in U.S. tariff policy. Yang emphasized that merchandise exports previously underpinned Taiwan-U.S. economic and trade cooperation. The future relationship will increasingly depend on how high-tech industries structure their operations. The growing number of Section 232 tariffs, which carry high rates and complex requirements, is significantly increasing costs and squeezing profit margins. Customs compliance has also become more difficult, while companies may face greater pressure from customers to adjust their production footprints.
Yang recommended that companies review their customs tariff codes and improve supply chain transparency. They should also move beyond tariff cost management toward comprehensive supply chain risk governance. Customs teams must work more closely with procurement, finance, and legal departments.
Source: Commercial Times (August 13, 2026). CIER: Trump Tariffs Have Triggered a Structural Shift in Taiwan-U.S. Economic and Trade Relations. Economic Daily News. https://www.ctee.com.tw/news/20260812701971-430104