Talks are in progress with the US over a freeze on foreign aid programs — including military assistance to Taiwan — and proposed sweeping tariffs on Taiwanese semiconductors, Representative to the US Alexander Yui (俞大?) said on Sunday.
On Jan. 24, the US Department of State temporarily halted almost all foreign assistance and paused new programs for 90 days to review whether they align with the policies of US President Donald Trump’s administration.
Washington told the Taipei Economic and Cultural Representative Office that the measures were temporary and do not indicate that all funding would be cut, Yui told reporters in Washington’s Chinatown following a Lunar New Year parade.
Photo: CNA
The White House told the office it is not a targeted measure against any particular country, but is intended to gain a comprehensive understanding of whether programs initiated under the administration of former US president Joe Biden align with Trump’s policies, he said.
Asked how long the aid suspension could last, Yui said that “we have a mutual understanding,” but declined to discuss details of the freeze regarding Taiwan’s military aid.
On Monday last week, Trump told Republican members of the US Congress about plans to impose a 100 percent tariff on chips exported to the US, with the US president again saying that 98 percent of the semiconductor industry has moved to Taiwan.
Communication is ongoing between Taiwan and the US, which have good relations in the chip industry, Yui said, adding that Taiwan is not a competitor to the US, but a reliable partner that can help “make America great again.”
Trump also proposed plans to impose sweeping tariffs on semiconductors, steel, aluminum, copper and pharmaceuticals at the House Republican Issues Conference in Miami, Florida.
Taiwan’s representative office told the US that Taiwan’s chip industry is just one part of the supply chain that uses US designs and precision instruments before being delivered to companies that commission Taiwan to manufacture the products, Yui said.
For every US$1 earned from semiconductor sales, US companies receive US$0.38, while Taiwanese companies earn US$0.11, he added.
A decade ago, 80 percent of Taiwan’s foreign investment went to China compared with 11 percent today, while 40 percent of current investments are going to the US, proving that Taiwan-US cooperation would continue to strengthen, he said.
Trump hopes to create more investments and job opportunities in the US during his second term, and the US-Taiwan Expedited Double-Tax Relief Act passed last month would increase Taiwanese investment in the US, he said.
Taiwan would continue to prove its usefulness in the artificial intelligence industry among other science and technology industries, he added.
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