The threat of tariffs has accelerated

The threat of tariffs has accelerated underlying trends that could destabilize Taiwan’s position in the region. Tariffs are further pushing companies to diversify their supply chains, which has increased competitive pressure from production hubs in lower-cost areas. Tariffs have also sped up efforts for mainland China to decouple from the United States, which will weaken the ability of the United States to use its economic leverage to deter conflict in the Taiwan Strait. And aggressive tariffs on Taiwan have soured Taiwanese public attitudes toward the United States, further complicating the domestic political challenge of balancing the dual superpowers of the United States and China. ufabet