TAIPEI (TVBS News) — Taiwan's National Development Council (NDC, 國發會) deputy head on Thursday (Nov. 7) warned that the shift in U.S. trade policies following the presidential election could heighten trade protection risks and exacerbate global economic fragmentation.
Analyzing Taiwan's current trade situation and strategies for expanding international trade space, NDC Deputy Minister Kao Shien-quey (高仙桂) perceived that this development may accelerate the restructuring of global supply chains, negatively impacting long-term global economic growth.
Speaking at the Legislative Yuan earlier that day, Kao also discussed Taiwan's progress in applying to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Following the U.S. election results, where Republican candidate Donald Trump won, Kao emphasized the potential economic ramifications.
She explained that the U.S. could maintain a 2.8% economic growth due to wage increases and wealth support, while the euro and yen might remain weak. Emerging markets are expected to show divergent performances, with China continuing to struggle and India driving growth in these markets.
Kao expressed concern that post-election shifts in U.S. trade policies could intensify trade protection risks and further fragment the global economy. She also noted that deeper U.S.-China confrontations could expand the global ripple effects of China's overcapacity through trade.