Taiwan's president downplays tariff tensions with the US as 'frictions
between friends'
[May 20, 2025] By
SIMINA MISTREANU
TAIPEI, Taiwan (AP) — The Taiwanese president said Tuesday that trade
tensions between the United States and Taiwan are just “frictions
between friends” in a show of optimism as tariff negotiations are
underway with Washington.
U.S. President Donald Trump imposed 32% tariffs on all imports from
Taiwan as part of sweeping duties levied against all U.S. trading
partners last month.
The tariffs on Taiwanese goods were subsequently lowered to 10% for 90
days to allow for trade negotiations. Officials from both sides held a
first round of talks last month, to be followed by another one in the
coming weeks.
In a speech marking his first year as president and focusing on Taiwan's
strategies to defuse the effects of U.S. tariffs and military threats
from China, Lai Ching-te struck an accommodating tone despite the tariff
pressure.
The U.S. and Taiwan have long “cooperated and have also encouraged each
other to grow,” he said. “There are bound to be frictions between
friends, but they can eventually be reconciled.”
“Even if there are differences of opinion, as long as there is a
foundation of trust and sincere dialogue, they can understand each other
better and deepen their friendship,” he added.
The U.S. has traditionally been Taiwan’s strongest unofficial ally in
the face of military threats by China, which considers the self-ruled
island its own territory, to be retaken by force if necessary.
Washington is bound by its own laws to provide Taipei with the means to
defend itself.
Lai said Taiwan would continue to strengthen its national defense
capabilities, both through foreign military procurement and domestic
arms development, and stand “shoulder to shoulder” with its allies “to
exert deterrent power.”
“We will prepare adequately to avoid war and achieve the goal of peace,”
he said.
He kept open the possibility of talks with Beijing, saying that “Taiwan
is very willing to engage in exchanges and cooperation with China” as
long as there is mutual respect and dignity.
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Taiwan's President Lai Ching-te delivers a speech at the 80th
Anniversary Commemoration Ceremony of Victory in Europe at Taipei
Guest House, in Taipei, Thursday, May 8, 2025. (AP Photo/Johnson
Lai)
 Taiwan's economy is supported by
massive semiconductor firms that supply microchips globally as well
as other electronics, advanced manufacturing and green tech makers.
Lai said he would continue to encourage foreign investment in
Taiwan, citing Monday's announcement by American technology company
Nvidia about opening a new office in northern Taipei.
Nvidia’s Taiwan-born CEO Jensen Huang also announced his company
would build an artificial intelligence supercomputer on the island
in partnership with chipmaker TSMC, tech firm Foxconn and the
Taiwanese government.
He also backed increased investments by Taiwanese firms in the U.S.
In March, TSMC responded to Trump’s tariff threats by pledging a new
$100 billion investment in the U.S., in addition to earlier
commitments to invest more than $65 billion in three factories in
Arizona, one of which began production late last year.
However, Lai’s controversial proposal to completely remove tariffs
on U.S. goods “on the basis of reciprocity,” in addition to bumping
up procurement of U.S. products, triggered protests last week by
Taiwanese farmers.
Lai opened his speech by offering his “deepest condolences” to the
families of three people, including two 12-year-old girls, who were
killed when a driver plowed through pedestrians in New Taipei City
on Monday. He promised a speedy investigation into the tragedy that
has shaken many on this self-governing island of 23 million people.
___
Associated Press video journalist Johnson Lai in Taipei, Taiwan,
contributed to this report.
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