Central Bank Head Doubts Trump Would Penalize Taiwan Over Trade Surplus

TaiwanPlus News

The head of Taiwan's central bank, Yang Chin-long, does not think U.S. President-elect Donald Trump would penalize Taiwan for running a trade surplus with the U.S., despite concerns following Trump's critical comments about Taiwan's semiconductor industry.

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00:00Resting confidence in Taiwan's high-tech dominance,

00:03Central Bank head Yang Jinglong said he does not think U.S. President-elect Donald Trump

00:09will penalize Taiwan for running a sizable trade surplus with the U.S.

00:14Concern raised as Trump campaigned on aggressive tariff plans on all U.S. imports

00:20as a way to boost the local economy.

00:23Trump had falsely accused Taiwan of stealing semiconductor business from the U.S.,

00:29casting doubt on the superpower as Taiwan's most important global backer

00:33and source of arms, despite not having formal diplomatic ties.

00:38It's a worry Yang is tempering, stating that the United States needs Taiwan.

01:00Trump's campaign pledge to impose sweeping tariffs on imports

01:06has raised eyebrows around the world, especially in China,

01:10with the president-elect vowing a 60 percent levy on Chinese-made goods.

01:15Taiwan's central bank has warned that such a policy would escalate trade conflicts around

01:20the world and would impact Taiwan's export-dependent economy,

01:25driven by the manufacture of advanced chips.

01:28Last month, leading chipmaker TSMC was caught in the crosshairs of the ongoing U.S.-China trade war

01:35when its tech was found in a China-made Huawei phone by way of a third-party customer

01:41breaching U.S. tech restrictions on Beijing.

01:44Lawmakers are warning such incidents cannot happen with Trump in office.

01:58During Trump's first term, he imposed tariffs on China but spared Taiwan.

02:08Now, as he prepares for a non-consecutive second term,

02:12Trump's pick of China hardliner Marco Rubio for secretary of state

02:17signals that his China policy could be more aggressive, affecting more than bilateral trade.

02:23Over the last four years, Taiwan's shared democratic values with the U.S.

02:28were key in working with outgoing President Joe Biden,

02:31but there will likely need to be some repositioning for its dealings with Trump.

02:36For him and his more transactional leadership style,

02:39Taiwan will have much more of an economic than ideational value.

02:44As to whether the tariffs will bring about more benefits or troubles for Taiwan,

02:49whose economy is still closely tied to that of China,

02:52will depend on what effectively Trump will do once he becomes president

02:57and on whether Taiwan will be able to insulate its economy

03:00and to further diversify its trade away from China.

03:04With two months to go until Trump returns to the White House,

03:07Taiwan has already set up an ad-hoc group led by the Vice Premier Zeng Lijun

03:13to strengthen ties with the new administration,

03:16a commitment to ensuring that U.S.-Taiwan relations

03:19remain strong and mutually beneficial through any transition.

03:24Yixin Chen and Joyce Zeng for Taiwan Plus.

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