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The American Chamber of Commerce in Taiwan has labeled 2026 a "golden age" for Taiwan-US trade in its annual White Paper, following a massive 70% year-on-year trade expansion from January to April driven by collaborative AI developments and supply chain shifts. However, the report also expresses anxieties regarding power grid reliability and migrant labor rights.
Transcript
00:00A golden age for Taiwan-U.S. trade and investment partnership.
00:03That's the view of the American Chamber of Commerce in its 2026 white paper,
00:08as both countries navigate geopolitical uncertainty and a new trade deal.
00:12The U.S. is Taiwan's top trade partner and Taiwan ranks number four for the U.S.
00:17The report says two-way trade rose by 70 percent year-on-year from January to April this year,
00:24largely driven by mutual investment in AI, chips, and equipment.
00:27This is an opportunity for the U.S. and Taiwan to work even closer together, collaborate.
00:36And so I think it's a great opportunity.
00:39I think the Paxilica is also another opportunity for the U.S. has brought Taiwan in
00:45and Taiwan to show their strength as a technology supply chain partner.
00:51The white paper comes after Taiwan and the U.S. secured an agreement on tariffs in February
00:56after months of negotiations, led by Taiwan's Vice Premier Chen Lijun.
01:01The current deal means a 15 percent tariff for most Taiwanese exports to the U.S.,
01:06with exemptions for over 2,000 agricultural and industrial products.
01:10It also gives the U.S. more access to Taiwan's market for goods including ground beef and motor vehicles.
01:16One area of concern for Amcham, meanwhile, is the reliability of Taiwan's power grid.
01:22The country phased out nuclear power last year and is actively expanding its renewable energy sources.
01:28But American partners are worried that renewables may not meet surging industrial demand for electricity from the AI boom.
01:36Amcham suggests the government should raise the issue of energy security to the presidential level.
01:40And as firms invest in local production capacity, discussions about better treatment for foreign migrant workers
01:47also top the list of recommendations, as Taiwan is on the list of economies that need to better enforce a
01:53ban on the use of forced labor.
01:55So we strongly support removing goods that were made with forced labor.
02:00And we see that there is opportunity, coming up opportunity in July.
02:05There is a hearing and also commenting period.
02:08That is an opportunity for Taiwan and the U.S. to enter into dialogue and clarify concerns from each other.
02:16And also, more importantly, to coordinate compliance expectations.
02:21The paper offers over 200 recommendations that also include strengthening joint drone development
02:28and making Taiwan more appealing to foreign skilled workers.
02:31While the geopolitical and industrial alliance between Taipei and Washington has never been tighter,
02:37sustaining this momentum will require concrete policy fixes.
02:40Devin Tsai, Nairing Lin, in Taipei for Taiwan Plus.
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