Senior US diplomat arrives in Taiwan as officials downplay Trump comments

American Depositary Receipts for Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker and major supplier to companies like Nvidia, closed down 4.3 per cent on Monday after Trump’s comments.

On Tuesday, TSMC’s Taipei-listed shares came off earlier lows to end down 1 per cent, outperforming a 1.2 per cent fall for the broader market.

Taiwan Premier Cho Jung-tai, asked on Tuesday about Trump’s latest comments, struck a diplomatic tone, saying Taiwan-US ties are based on being like-minded democratic allies.

“I also believe that the major US political parties have an absolutely high degree of consensus on the understanding of the US-Taiwan relationship” he said.

Economy Minister Kuo Jyh-huei told reporters he respected the remarks of “international friends”.

“US relations with Taiwan have developed steadily over time, and both parties share the same attitude toward Taiwan,” Kuo said.

Taiwan does not have a formal defence treaty with the United States but it has billions of dollars of weapons on order and has repeatedly said it is committed to spending more on its military.

Taiwan’s government rejects Beijing’s sovereignty claims.

Taiwan received strong backing from Trump’s 2017-2021 administration, including arms sales, which have continued under the government of US President Joe Biden.

Trump spoke to then-Taiwan President Tsai Ing-wen in 2016 shortly after he won the election, prompting anger in Beijing, as the United States does not officially recognise Taiwan’s government, and glee in Taipei.

But with China’s stepped up military activities around Taiwan, including a new round of war games earlier this month, Taipei is nervously watching what a new Trump administration would mean, especially given the tightness of opinion polls.

In the run up to the election over the past three months, two former senior Trump administration officials visited Taiwan – Kelly Craft and Nikki Haley who both served as his ambassadors to the United Nations.

“Trump is going to expect some things from our friends and allies across the world, particularly friends like Taiwan who are under threat. He will expect you to carry your weight as a security partner,” Craft told a security forum in Taipei last month.