U.S. President Donald Trump and Chinese President Xi Jinping held discussions during the APEC summit, attracting significant global attention. Hsien-Ming Lien, President of the Chung-Hua Institution for Economic Research (CIER), noted that while no major breakthroughs were made, the willingness of both sides to continue dialogue shows their intention to prevent an escalation of the trade war. This is viewed as a positive signal for the global economy.

Taiwan-U.S. Tariff Negotiations Expected to Accelerate

President Hsien-Ming Lien noted that following the Trump-Xi meeting, the U.S. has reduced some tariffs on China and advanced reciprocal tariff negotiations with countries including Japan and South Korea, suggesting that Taiwan-U.S. consultations may also gain momentum. According to government officials, Taiwan’s temporary 20% reciprocal tariff could be lowered to 15%, symbolizing a new phase in bilateral economic relations. However, he cautioned that tariffs are merely the starting point—the semiconductor investigation launched by the U.S. under Section 232 of the Trade Expansion Act remains the critical factor affecting Taiwan’s industries.

Trump’s new round of trade policies is becoming the “new norm.” While various countries have made progress in negotiations, they remain “works in progress.” Taiwan must carefully assess U.S. tax policies and supply chain shifts, and flexibly adjust its industrial and investment strategies to maintain its global competitive edge.Author:

CIER Editorial Team
Date:October 31, 2025