TAIPEI (Taiwan News) – Taiwan should speed up its reaction to US President Donald Trump’s plan to impose tariffs on semiconductors, US-Taiwan Business Council President Rupert Hammond-Chambers said Friday.

The most important factor is that the public in the US and Taiwan understand the steps taken by both sides to cooperate, he told CNA. If the US wants to move forward on AI and defeat the competition from China, it will have to import most of the know-how from Taiwan, he said.

Taipei would be unsuccessful if it tried to persuade Trump to change his thinking that Taiwan “stole” its semiconductor sector from the US, according to Hammond-Chambers. The country needs to announce measures in support of the Trump administration, he added.

The new US government wants to encourage more foreign investment while correcting excessive trade deficits. It also wants immediate action, which President Lai Ching-te (賴清德) has promised in the form of higher defense spending and more arms deals.

Hammond-Chambers said that in Taiwan’s current political climate, raising the defense budget to 5% of GDP might be difficult. However, he said, Lai has indicated the right direction, telling the US that he is determined to strengthen Taiwan’s defense capabilities.