Cabinet official confident in economic outlook amid U.S. tariff concerns

Taipei, July 2 (CNA) Senior Cabinet official Kung Ming-hsin (龔明鑫) projected a positive outlook for Taiwan's economy during remarks in Taipei on Wednesday, citing the country's central role in the global development of artificial intelligence (AI).

As long as Taiwan maintains its edge in the manufacture of information and communications technology (ICT) and AI-related products, it will remain a mainstay in the global supply chain, according to Kung, secretary-general of the Executive Yuan, at a forum on trade and economic relations between Taiwan and the United States.

"No country can afford to exclude Taiwan ... unless it wishes to abandon its AI ambitions in the next five years," Kung said, adding that Taiwan provides the "firepower" needed for the global battle, likely referring to the country's strength in advanced semiconductor production.

The official touched briefly on potential U.S. tariffs on Taiwanese goods, including semiconductors, saying Taiwan had weathered past disruptions -- particularly the U.S.-China trade war in 2017 and the COVID-19 pandemic -- and adapted to changing circumstances.

He added that Taiwan had previously overcome greater challenges and achieved economic performance that exceeded expert expectations.

"This is why I remain optimistic," Kung said, adding that there would be "good opportunities" in the second half of 2025 "regardless of any changes that may come."

In early April, U.S. President Donald Trump announced the imposition of "reciprocal" tariffs on imports from about 185 countries and territories, including a blanket levy on Taiwanese goods of 32 percent.

While semiconductors are not included in the proposed measures, they are currently being investigated by the U.S. commerce department, the result of which could still lead to import duties.

Trump later suspended the "reciprocal" tariffs for 90 days and imposed a reduced 10 percent duty on most countries. The temporary pause is set to expire on July 9.

According to the Cabinet's trade negotiations agency, Taiwanese officials and their American counterparts completed a second round of talks on the "reciprocal" tariff on Taiwan in Washington at the end of June.

However, the agency provided little detail about the negotiations, saying only that both sides had achieved "constructive progress" during the talks.