US President Donald Trump’s inaugural speech centered around a “revolution of common sense” and pushed the concept of his “America First” policy to the extreme. For Taiwan, this not only illustrates Trump’s blueprint for US domestic affairs, but could also be the prelude to a drastic shift in the international order. It is crucial to pay close attention to the potential impact of upcoming US policy shifts on Taiwan’s economy, politics and national security.
Trump proposed a “revolution of common sense” to argue for the reform of the US’ internal systems, while his newly published “America First” priorities include goals to “drain the swamp” and “bring back American values.” In his address, Trump criticized the political ecosystem of former US president Joe Biden’s administration, referring to it as a “radical and corrupt establishment,” and vowed to restore the “integrity, competency and loyalty” of the US government.
Trump’s address emphasized a return to traditional US values: “As of today, it will henceforth be the official policy of the US government that there are only two genders, male and female.”
Trump has also called for renaming historical landmarks in line with “America First” values. While Trump is focused largely on US domestic affairs, his underlying ideology would influence the US’ international image and actions.
In his address, Trump also proposed significant adjustments to energy policy, stating that the US has “the largest amount of oil and gas of any country on Earth.”
Trump’s policies present massive challenges to global climate cooperation. In particular, his executive order to withdraw the US from the Paris Agreement for a second time would greatly weaken collective action on climate change.
The only direct mention of China in Trump’s address was in reference to the Panama Canal, which highlighted his tough attitude toward US-China relations. He criticized the decision to hand over the canal to Panama as “foolish” and indicated that China’s role in canal’s operations is unacceptable. He vowed to bring the management of the Panama Canal back into the hands of the US.
For Taiwan, this means that the Trump administration might exert further pressure on China, with the Panama Canal issue becoming a focal point for how the US counters and pressures China. Taiwan should closely monitor all actions the US takes in this area. China’s control of the canal could impact global shipping trade, while a US-China standoff over this issue would indirectly affect Taiwan’s position in the US-China dynamic.
Taiwan should watch closely to see if the US would use the Taiwan issue as leverage in negotiations with China over the Panama Canal. To prevent this, we must ensure our nation’s importance in the US’ Asia-Pacific strategy.
Trump also highlighted the return of the US as a “manufacturing nation” and implied more protective measures for the US automobile industry, which would likely alter the landscape of the global supply chain. His “America First” policy might lead him to adopt more protectionist trade measures, which could negatively impact Taiwan’s export-driven economy.
Behind Trump’s “revolution of common sense” are the US’ reflections on globalization, climate change and multilateral cooperation. These upcoming changes would profoundly impact the geopolitical and economic landscape of the Asia-Pacific region. While Trump’s policies might pose risks, they also present an opportunity for Taiwan to redefine its role on the international stage.
Liao Ming-hui is an assistant researcher at the Chung-Hua Institution for Economic Research.
Translated by Kyra Gustavsen
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