Taiwan Could Be Affected by China-U.S. Trade War|中國2千億美元商品 將再遭美課關稅

The trade war between the United States and China continues. The U.S. plans to raise tariffs on US$ 200 billion in Chinese imports, and the public comment period ended on Sept. 6. Scholars say U.S. President Donald Trump wants to raise tariffs against China because China refuses to respond and the tariffs may be lifted if the Republican Party loses the midterm elections in November. The tariffs focus mainly on commodities and have a far-reaching impact for both sides. Taiwan may be indirectly affected.


U.S. President Donald Trump wants to hike tariffs from 10 to 25 percent on US$ 200 billion of Chinese goods. The public comment period ended on the 6th.

(Trump) has two goals right now: winning the midterm elections and getting reelected. To do this, the U.S. job market has to improve and he has to bring overseas manufacturing back to the U.S.

The trade war began in July, with both sides announcing additional tariffs on US$ 50 billion of mostly non-commodity goods. The U.S. then announced it would raise tariffs from 10 percent to 25 percent on US$ 200 billion of commodities, including tires, furniture, wood products, handbags and pet food. The tariff is expected to go into effect this week. One expert says Taiwan may be indirectly affected.

Taiwan's GDP won't be affected much, but the GNP may be because of the impact on Taiwanese businesses with investments in China. I think the short-term effects will be greater. Once demand starts waning in China, orders to Taiwanese middleman companies will fall.

The expert says end products including smartphones, televisions and computers account for close to 30 percent of the US$ 200 billion. While the U.S. has concerns the tariff will create cost push inflation, it believes the strength of the greenback can offset this. China, meanwhile, is taking a wait-and-see approach.