As President Donald Trump advances his “Made in America” initiative to repatriate manufacturing, global tariff tensions have intensified. Recent reports indicate that the White House is considering distributing US$2,000 tax rebates to American citizens, funded by tariff revenues. However, the U.S. Federal Appeals Court has ruled that Trump’s invocation of the International Emergency Economic Powers Act (IEEPA) to impose reciprocal tariffs constitutes an overreach of authority. Experts project an 80 percent likelihood that the Supreme Court will deliver an adverse decision before the end of the year, introducing significant variability into his trade agenda.
Hsien-Ming Lien, president of the Chung-Hua Institution for Economic Research (CIER), observes that Trump’s approach to reciprocal tariff negotiations emphasizes “substantial market access, major procurements, and large-scale investments,” which compels nations to liberalize markets and pledge substantial capital commitments. Yet, most accords reflect only broad financial agreements, devoid of detailed provisions. President Lien cites the European Union’s pledge to procure US$750 billion in U.S. energy as an example. This figure substantially exceeds actual American export volumes, underscoring the impracticality of such terms.
In President Lien’s assessment, nations including South Korea and Japan remain at odds over investment stipulations and appear inclined to defer negotiation strategies pending the Supreme Court’s verdict. Should Trump’s tariff framework be invalidated, the pace of U.S.-Taiwan trade discussions could face further disruptions. President Lien advises vigilant monitoring of global developments and measured strategic adaptations to safeguard economic and trade equilibrium.
Author: CIER Editorial
Team Date: October 8, 2025