Trump's Taiwan policy sparks controversy: Former officials warn about the risks of strategic ambiguity, and tariff policies damage the trust of Indo-Pacific allies.

Taiwan • Politics • 5h ago
Trump's Taiwan policy sparks controversy: Former officials warn about the risks of strategic ambiguity, and tariff policies damage the trust of Indo-Pacific allies.

In May 2025, during his second term, former President of the United States, Donald Trump, re-adopted the "strategic ambiguity" stance on Taiwan policy, which drew international attention. Trump did not make an explicit commitment to defend Taiwan, as some former officials believe this strategy helps maintain regional stability. At the same time, the Trump administration imposed high tariffs on Taiwan and its Indo-Pacific allies, which increased doubts among regional countries about U.S. commitments, impacting both economic and diplomatic relations. This article examines the policy background and the warnings issued by former officials, highlighting the tense relationship between U.S. policy towards Taiwan and its Indo-Pacific strategy.

Key Updates

4h ago

Kung Ming-hsin, Secretary-General of the Executive Yuan, Wraps Up Washington Visit: Promoting the Taiwan-US Economic and Trade Relations and Supply Chain Agreements

Kung Ming-hsin, Secretary-General of the Executive Yuan, concluded his visit at the "SelectUSA Investment Summit" in Washington, D.C. on May 13, 2025. He led the Taiwanese delegation in discussions with U.S. officials, members of Congress, and the business community to promote Taiwan-U.S. economic and trade cooperation. Key areas of focus included establishing a "non-red supply chain" (a supply chain not influenced by China), increasing procurement from the U.S., promoting new investment plans, promoting the passage of an agreement to avoid double taxation, and making progress in tariff negotiations. Kung Ming-hsin witnessed the signing of a memorandum of understanding between the Republic of China International Economic Cooperation Association and the American Chamber of Commerce in Taiwan, deepening private sector economic and trade exchanges.

5h ago

Trump's Taiwan policy sparks controversy: Former officials warn about the risks of strategic ambiguity, and tariff policies damage the trust of Indo-Pacific allies.

In May 2025, during his second term, former President of the United States, Donald Trump, re-adopted the "strategic ambiguity" stance on Taiwan policy, which drew international attention. Trump did not make an explicit commitment to defend Taiwan, as some former officials believe this strategy helps maintain regional stability. At the same time, the Trump administration imposed high tariffs on Taiwan and its Indo-Pacific allies, which increased doubts among regional countries about U.S. commitments, impacting both economic and diplomatic relations. This article examines the policy background and the warnings issued by former officials, highlighting the tense relationship between U.S. policy towards Taiwan and its Indo-Pacific strategy.

22h ago

At the Saudi-American Investment Forum, U.S. Treasury Secretary [Name] emphasized the importance of cooperation with allies in addressing challenges posed by China and Russia, and noted that Asian trade negotiations are progressing smoothly.

U.S. Treasury Secretary Bessant stated at the Saudi-U.S. Investment Forum in Saudi Arabia that the U.S. needs to rely on its allies, particularly in the areas of economy and trade, to address the challenges posed by Sino-Russian cooperation. Trade negotiations between the U.S. and various Asian countries are progressing smoothly, with Taiwan's proposals having received high praise. Discussions with Japan, Indonesia, South Korea, and Thailand show potential for cooperation, but negotiations with the European Union are moving more slowly due to challenges related to collective action. Bessant remains confident about ultimately reaching an agreement.

05/12 12:25

US and UK Reach Auto Tariff Agreement: Trump Describes It as "Exclusive Treatment for the UK," Tariff on an Annual Quota of 100,000 Vehicles Reduced to 10%

On May 8, 2025, the United States and the United Kingdom announced a limited tariff agreement covering automobiles, steel, and aluminum. The U.S. will reduce tariffs on up to 100,000 British cars imported per year from 27.5% to 10%, with any cars beyond this number still subject to the 27.5% tariff. Former President Trump called this a "special treatment for the UK." The agreement was announced on Victory in Europe Day, highlighting the Anglo-American alliance. Although the agreement still requires negotiations on legal and technical details, it has already provided reductions in tariffs and export guarantees for the British automotive industry.

05/10 07:03

The United States and the United Kingdom have reached their first trade agreement: reduction in car tariffs and exemptions on steel and aluminum products, sparking concerns about Taiwan's tariff treatment.

On May 8, 2025, the United States and the United Kingdom announced the signing of the "Economic Prosperity Agreement," which marks the first bilateral trade agreement since President Trump initiated the "Reciprocal Tariff Policy" in April. The agreement includes a reduction in automobile tariffs, the establishment of import quotas, tariff exemptions for steel and aluminum products, and creates $5 billion in business opportunities for U.S. exporters. This move has raised concerns regarding the future tariff treatment of other trade partners, particularly Taiwan, since the U.S. imposes a 32% tariff on most Taiwanese products, with only a few high-tech products being exempt.

05/09 11:04

High-level U.S.-China economic and trade talks are held in Switzerland: He Lifeng and the U.S. Treasury Secretary discuss tariff issues

On May 9, 2025, Vice Premier of the State Council of China, He Lifeng, traveled to Switzerland to hold high-level economic and trade talks with U.S. Treasury Secretary Scott Bessent in Geneva. This marks the first major engagement since the onset of the U.S.-China trade war. The talks occur amid economic pressure and the risk of international isolation facing China, with both parties prepared to negotiate on tariff matters. The meeting underscores the sensitivity of diplomatic interactions between the U.S. and China, with both sides offering differing accounts of who initiated the talks, highlighting deep-rooted mistrust.

05/09 11:04

India aims to cut tariffs and relax export controls to achieve a landmark trade agreement with the United States.

Following U.S. President Trump's announcement to pause new global tariff measures for 90 days, India is pushing to reach a bilateral trade agreement with the United States. India has proposed a nine-point plan to narrow the tariff gap from 13% to under 4% and apply zero tariffs to 60% of U.S. imports. India also plans to ease export controls on high-value U.S. products, including sectors like aircraft parts and luxury cars. Negotiations are speeding up between the two countries, and the Indian delegation is expected to visit the U.S. later this month to push forward the agreement process.

05/09 07:08

Starlink Becomes a New Bargaining Chip in U.S. Trade Negotiations: Vietnam and Lesotho Sign Agreements, India Could Be the Next Target

President Trump of the United States has used SpaceX's Starlink satellite network service as an informal negotiation tool in global tariff negotiations. The U.S. State Department is urging several countries to approve Starlink's market entry, with Vietnam and Lesotho already having signed agreements, and India potentially being the next target. This move is viewed as a strategy to enhance trade relations. The U.S. dollar index has seen a slight decline as the market focuses on U.S. trade policy and interest rate trends.

05/09 02:00

The US-UK trade agreement sparks a sovereignty dispute: The US gains veto power on Chinese investments, and the film and television industries face tariff threats.

On May 9, 2025, UK Prime Minister Skel and US President Trump announced the UK-US trade agreement. The agreement provides tariff reductions for the UK's automotive and steel industries, but grants the US the right to review significant Chinese investments in the UK, raising concerns about UK sovereignty. The film and television industry was excluded from the agreement and is facing the threat of high tariffs from the US. As a result, the Skel government is facing criticism and pressure from domestic political and industrial circles.

05/08 23:02

Thaw in US-China Trade War: Ahead of Geneva Talks, Trump Stands Firm on Maintaining Tariffs, Video Translation Error Leads to Misunderstanding

The United States and China will hold high-level economic and trade talks in Geneva, Switzerland, on May 10 and 11, 2025. This will be the first face-to-face dialogue since the Trump administration imposed a 145% increase in tariffs on Chinese goods. China claims the talks are at the U.S.'s request, while the U.S. states that China initiated the contact. Trump emphasized that he would not lower tariffs before the negotiations, but if the talks go well, adjustments might be considered. A video interview with Trump circulating online was found to be misinformation due to translation errors that caused misunderstandings.

Trump Reverts to "Strategic Ambiguity," Taiwan Faces Uncertainty

On May 12, 2025, during a White House press conference discussing US-China trade negotiations, President Trump mentioned the possibility of "reunification and peace." Although he did not explicitly mention Taiwan, it immediately raised high alert in Taipei. The office of Taiwan President Lai Ching-te quickly issued a statement emphasizing that they had not received any information about negotiations involving Taiwan and demanded clarification from the US.

Trump's remarks were interpreted by observers as possibly hinting at some form of deal between the US and China on the Taiwan issue, echoing his past praise for Chinese President Xi Jinping. Thomas J. Shattuck, a senior project manager at the University of Pennsylvania's Perry World House, noted that Trump's return to a "strategic ambiguity" stance contrasts sharply with former President Biden's repeated public commitments to defend Taiwan with "strategic clarity."

Former Officials Warn: Strategic Clarity May Backfire

Regarding the debate over strategic ambiguity and clarity, former US Assistant Secretary of Defense for Indo-Pacific Affairs Ely Ratner publicly stated that adopting strategic clarity on Taiwan provides "almost no benefits and only drawbacks." He pointed out that China has long anticipated possible US intervention in a Taiwan Strait conflict and has been preparing militarily. If the US clearly states it will defend Taiwan, it may instead provoke Beijing's actions and cause political turmoil within the US.

Ratner emphasized that strategic clarity not only fails to deter China but may also make Taiwan the focal point of international conflict. He believes that maintaining a policy of ambiguity, though imperfect, remains the best option to balance deterrence and stability.

Tariff Policy Impacts Ally Trust, Indo-Pacific Strategy Faces Challenges

In addition to the controversy over Taiwan policy, the Trump administration's recent implementation of "reciprocal tariffs" has drawn widespread attention in the Indo-Pacific region. On April 2, 2025, the US announced a minimum 10% across-the-board tariff on most trade partners, including Taiwan, Japan, South Korea, Australia, and ASEAN countries, with some countries like Taiwan facing tariffs as high as 32%. Although the US announced on April 9 a 90-day suspension of further tariff increases for non-China countries, the uncertainty has already impacted regional economic and diplomatic relations.

Former US Deputy Assistant Secretary of Defense Richard Lawless warned that if the US continues to prioritize economic interests over security commitments, it may drive away newly established alliances in the Indo-Pacific region. He noted that these countries might question the US's strategic sincerity, thereby weakening regional cooperation and security frameworks.

Taiwan's Difficult Situation: Dual Pressure from Economy and Security

Under the dual pressure of the Trump administration's strategic ambiguity and tariff policy, Taiwan faces unprecedented challenges. According to a report by Taiwan Insight, Taiwan's exports to the US have been significantly impacted by the new tariff policy, especially the semiconductor industry facing potential tariff increases. Although Taiwan's economic performance was strong in the first quarter of 2025, future growth forecasts are overshadowed by US policy uncertainty.

Additionally, Taiwan's inability to join the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) places it at a disadvantage in regional economic integration. This leaves Taiwan lacking sufficient alternative markets and bargaining chips when facing US tariff pressure.

Indo-Pacific Allies in a Wait-and-See Position, US Credibility Tested

The Trump administration's trade policy has also left other Indo-Pacific allies in a wait-and-see position. According to a PECC report, ASEAN economic ministers decided at their February 2025 meeting not to take retaliatory measures against US tariffs, instead emphasizing resolving disputes through dialogue. However, regional countries are increasingly doubting whether the US remains a reliable partner.

CSIS analysis pointed out that if the US continues to adopt high-pressure economic measures against allies, it will accelerate regional countries' pursuit of other economic cooperation mechanisms, further weakening US influence in the Indo-Pacific. This policy uncertainty and unilateralism have become a significant risk to the US Indo-Pacific strategy.

References

People Also Ask...

faq

Could Trump's tariff policy create greater challenges for Taiwan's semiconductor industry?

faq

How do Trump's tariff policies affect Taiwan's economy?

faq

Will Trump's tariff policy potentially affect the competitiveness of Taiwan's semiconductor industry?