TAIPEI (Taiwan News) — Minister of Economic Affairs Shen Jong-chin (沈榮津) said on Monday (Oct. 14) that despite the U.S. and China announcing a truce on tariff hikes, global deployment is still the long-term trend of Taiwanese businesses, CNA reported.
U.S. President Donald Trump agreed Friday to put off the tariff hikes from 25 to 30 percent on US$250 billion of Chinese goods that were planned for this week. In exchange, he said China would buy American farm goods.
However, the two sides have reportedly not made any progress on the causes of the 15-month-old trade war. Shen said that as a result, it was likely Taiwan’s businesses would continue to spread into new markets and establish manufacturing bases around the world.
The minister was asked if the pace at which Taiwanese businesses are reshoring from China would slow down because of the truce. The minister said he did not think this would be the case because the U.S. still maintains 25 percent tariffs on Chinese goods.
Shen added that as Taiwanese companies are reshoring from Chiina, the government would provide assistance. This would include providing solutions to the problems of the "five lacks" (lack of land, lack of water, lack of electricity, lack of workers, and lack of talent).