Last month, US President Donald Trump placed a 32% tariff on all imports from Taiwan. This affected trade with many partners. The US later reduced the tariff to 10% for 90 days. This change was made to allow time for negotiations between the two countries.

Taiwan’s President Lai Ching-te called the tensions “frictions between friends.” He expressed hope that the countries could resolve their issues through trust and cooperation. Lai encouraged ongoing talks and urged both sides to handle differences with respect and understanding. US and Taiwanese officials have already held one round of talks and plan to meet again soon.

Lai also promised that Taiwan will strengthen its national defense. The country plans to buy weapons from abroad and develop its own military technology. Taiwan stands with its democratic allies, including the US, to stop military threats. While Taiwan wants peace, it is preparing to avoid war. Lai said Taiwan is open to talks with Beijing, asking for respect in future discussions.

Taiwan’s economy depends on technology industries like semiconductors, green tech, and electronics. Lai welcomed Nvidia’s plan to open an office in Taipei and build an AI supercomputer with Taiwanese partners. The project includes major companies like TSMC and Foxconn. Lai also encouraged Taiwanese firms to invest more in the US. TSMC responded by promising $100 billion in US expansions, including three factories in Arizona.

However, Lai’s plan to remove all tariffs on US goods caused protests. Taiwanese farmers warned that more US imports could harm local farming. They held demonstrations to voice their concerns.

Trade and diplomatic relations between the US and Taiwan remain delicate. Both sides want to continue talks to avoid conflicts. Taiwan hopes to protect its economy and security while keeping strong ties with the US and other allies. The upcoming weeks will be important for finding peaceful solutions and building trust.