Following US President Donald Trump’s unexpected “Liberation Day” declaration and the announcement of a steep 32% tariff on Taiwanese imports, the Taiwanese government has adopted a strategic, multi-faceted response aimed at preserving economic stability while safeguarding its critical relationship with Washington. With the US accounting for over 23% of Taiwan’s exports, Taipei has avoided confrontation, instead unveiling a five-pronged strategy centered on negotiations, industrial support, and deeper US-Taiwan cooperation. This report explores the details of Taiwan’s policy approach, the political challenges facing its implementation, and the broader implications for trade, diplomacy, and regional stability.
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