Taiwan Could Profit from China-U.S. Trade War|中美貿易戰延燒 學者籲台商回流

Following Donald Trump's announcement that he was imposing $50 billion worth of tariffs on China, The U.S. has threatened China with new tariffs on another $200 billion of goods plus additional 10 percent tariffs. China immediately retaliated with similar measures on U.S. imports.


The TAIEX opened at 10,904 points on the 20th but fell to a low of 10,842 points during trading. Retail investors say Taiwan's markets were affected by the tumbling U.S. market and investor confidence is low due to the escalating China-U.S. trade war.

We are also caught in the crossfire. Taiwan exports electronics that are manufactured in China to the U.S. We will be affected for sure.

After the U.S. announced $50 billion worth of tariffs on China, Donald Trump threatened China with new tariffs on another $200 billion of goods plus additional 10 percent tariffs. China immediately retaliated by slapping tariffs on $50 billion of U.S. goods. Analysts say China will target major corporations in China with U.S. backers.

China's total purchase volume from the U.S. is only $150 billion. The most likely scenario right now is that China will issue sanctions against the U.S. and then start interfering with U.S.-backed companies in China. Take Starbucks, McDonald's and Subway in the service industry for example. There could be infringement lawsuits targeting specific companies or other measures targeting U.S. debt. China could deploy multiple tactics to contain the U.S. like a football team doing whatever it takes to win.

The analyst also says the U.S.' $200 billion tariff list may include telecom products, which would affect Taiwan's component supply chain. The analyst says the Tsai administration needs to allow Taiwan companies in China to move back to minimize losses during the trade war. To reduce risk, U.S. companies will look for alternate electronic component suppliers and Taiwan's domestic supply chain could reap the benefits.