The Trump administration's tariff policies are constantly changing, significantly impacting Taiwan, with tariffs reaching as high as 32% against the U.S. In response to this situation, Director Gao Yi-Cheng of the Financial Research Institute recently suggested three strategies at the APIAA forum to enhance Taiwan's competitiveness and improve its favorability with the U.S.

Director Gao proposed that Taiwan can import key talents from the U.S. to boost competitiveness, referencing past actions like donating masks and medical supplies during the pandemic and providing aid to Japan after the earthquake, which serve as effective methods to increase unconditional aid to the U.S.

Furthermore, he emphasized the importance of improving the quality of local Taiwanese enterprises and actively expanding markets outside the U.S. to address potential tariff pressures.

While the Trump administration's high tariffs aim to achieve certain goals, they might also lead to adverse effects, such as a decrease in imports potentially causing inflation and raising government bond yields—ultimately detrimental to the U.S. economy.