Prolonged U.S.-China trade war could hurt Taiwan: think tank
Taipei, Sept. 17 (CNA) The prolonged trade battle between the United States and China could eventually hurt Taiwan, especially in electronic components and machine tools sectors, a think tank warned recently.
According to foreign media reports, U.S. President Donald Trump has decided to impose new tariffs on US$200 billion worth of Chinese imports, with the announcement to be made in the coming days.
As a small and open economy, it is unlikely Taiwan will escape unscathed from the trade war, said Yuanta-Polaris President Liang Kuo-yuan (梁國源).
Regardless of who stands up on top, the trade war is certainly going to impact Taiwan, as the U.S. and China are two of its major export markets, Liang said.
In a recent report released by Yuanta-Polaris, one of Taiwan's leading economic think tanks, it mentioned the country's machine tool and electronic component industries as the two sectors that will likely be the most affected by the ongoing trade war.
With the tariff list targeting Chinese imports continuing to expand, machine tools and electronic components are expected to be among the items that will likely to be hit, the report said.
This is because the items account for roughly 50 percent of the total Chinese imports into the U.S., and sooner or later they will be targeted by the Trump administration, it said.
To date, many Taiwanese companies use mainland China as the manufacturing base for their machine tools and electronic components, which are then exported to the U.S.
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