Taipei: After a tariff agreement was reached this week addressing key economic issues, Taiwan and the United States can now focus more on security cooperation in the Indo-Pacific, a former White House official said Friday. Alexander Gray, who served as deputy assistant to the president and chief of staff of the National Security Council during U.S. President Donald Trump’s first presidency, made the comments in an interview.
According to Focus Taiwan, Gray called the trade deal a “very positive development in the U.S.-Taiwan relationship,” as Washington has had several disagreements with Taiwan on trade matters over the years, going back to the first Trump administration. He added that the deal is a step toward resolving U.S. concerns about semiconductor imports, which have long been a major source of friction between the two sides. With this issue now addressed, he believes there is a significant opportunity for the U.S. and Taiwan to focus on strengthening their partnership and security, as well as enhanci
ng regional collaboration and deterrence in the Indo-Pacific.
After months of negotiations, the United States agreed to cut tariffs on Taiwanese goods from 20 percent to 15 percent, without stacking them on existing most-favored-nation (MFN) rates. Meanwhile, Taiwanese semiconductor, electronics manufacturing services (EMS), AI, and energy companies will invest US$250 billion in the U.S. based on their own plans. Taiwan’s government has pledged to provide up to US$250 billion in credit guarantees for financial institutions to support investments in the U.S. market by the semiconductor and information and communication technology sectors.
Gray, who currently serves as Chief Executive Officer of American Global Strategies, an international strategic advisory firm, remarked that the arms deal approved and sent to Taiwan late last year sends a strong signal to Beijing that the U.S. remains steadfast under the Taiwan Relations Act and the Six Assurances. In December, the U.S. government announced the potential s
ale of eight arms packages to Taiwan, including HIMARS rocket systems, anti-tank missiles, and drones, at an estimated total cost of US$11.1 billion.
Gray expressed hope that the deal leads to more arms sales over the next year, but acknowledged that the U.S. currently faces a significant delivery backlog to Taiwan. As the U.S. works to expand its defense industrial base, he emphasized the importance of not only making new sales but also delivering on the weapons Taiwan has already purchased.