Li Chun Interprets US Tariff Policy as 'Facadism,' Estimates Taiwan to Maintain 15% Non-Cumulative Tariff
Li Chun, speaking at the 2026 'New Framework for Taiwan-US Economic and Trade Agreement' forum, interpreted the US tariff policy as 'Facadism' and predicted Taiwan would maintain a 15% non-cumulative tariff. He highlighted that Taiwan's $250 billion investment in the US presents opportunities, comparing it to past investments in China without hollowing out Taiwan. The Taiwan-US Reciprocal Trade Agreement (ART) is seen as the best solution, accelerating the removal of artificial barriers.
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- 📰 Published: April 7, 2026 at 14:20
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The North American Taiwanese Chambers of Commerce hosted the 2026 'New Framework for Taiwan-US Economic and Trade Agreement: Opportunities, Challenges, Strategies, and New Layout of Non-Red Supply Chains for Taiwanese Enterprises Investing in the US' forum today. Li Chun delivered a keynote speech titled 'Taiwan-US Trade, Tariff Agreements, and Explanation of US$250 Billion Investment in the US: Challenges and Opportunities in the International Economic and Trade Situation.'
Li Chun stated that some worry about the US$250 billion investment by Taiwanese companies in the US hollowing out Taiwan. However, he estimated that Taiwan's investment in China over the past 40 years was approximately US$800 billion to US$1 trillion, and Taiwan not only was not hollowed out but continued to advance. He believes that investing in the US is a trend of the times, and he sees opportunities far outweighing challenges.
Li Chun analyzed that the current Taiwan-US Reciprocal Trade Agreement (ART) is the best solution for balancing benefits and impacts under Taiwan's current situation. This is because Taiwan faced significant restrictions at the beginning of negotiations, primarily due to the highest growth rate in the US trade deficit with Taiwan, which increased from US$74 billion in 2024 to US$146.8 billion in 2025, and may continue to rise this year. This trend is not caused by the agreement but by the shift of supply chains to the US. Therefore, the Taiwan-US agreement accelerates the removal of artificial barriers and does not force unwilling companies to invest in the US.
He pointed out that achieving a result similar to Japan and South Korea this time is not only the best outcome Taiwan can get but also reflects a 'friendship price' in Taiwan-US relations, hoping both sides deepen integration.
Regarding the expiration of the legal basis for US reciprocal tariffs, Li Chun believes that the US has many tools to maintain the legal basis for tariffs. In France and Belgium, there is an architectural preservation method called 'Facadism,' which allows the facade of a building facing the street to retain its original appearance while the rest can be rebuilt and renovated. Currently, the US goal is to use 'Facadism' to maintain the tariff structure with various countries before the ruling, but to rebuild tariff legal policies. He predicted that when it is announced by the end of July, the underlying legal basis will be replaced by Section 301, but Taiwan will still be able to maintain a 15% tariff without MFN叠加.
Li Chun noted that the cost and price for the US to maintain the tariff facade are far lower than renegotiating. Therefore, if the prediction is correct, Taiwan will gain time from now on to accelerate preparations. It should be assumed that all tariffs will be the same in about four months. The government can quickly assist the automotive and agricultural product sectors in adjusting, and enterprises can maintain their layouts. This appears to be the safest arrangement at present.
He believes that the global semiconductor supply chain has moved towards a bifurcated pattern, with strategic industries continuing to decouple, and reliance and risks on critical mineral resources decreasing. Additionally, new technological battlefields, including dual-use AI and unmanned control, advanced computing and quantum technology, new energy, new materials, biotechnology, unmanned autonomous systems, and undersea technology, are all important areas for entering the US and will determine the outcome of the future US-China strategic confrontation.
Li Chun concluded that Taiwan's economic security has three elements: first, maintaining competitiveness in the global supply chain, whether in Hsinchu, the US, or Europe – 'our King Maker importance far outweighs a Hsinchu address'; second, safeguarding economic autonomy; and third, safeguarding economic resilience. The US plays a key role in these three elements, so the Taiwan-US agreement is a foundation and an important legal beginning supporting future deepening of Taiwan-US cooperation. In the future, both sides will need more agreements to facilitate smoother interactions, which is the best way to help Taiwan grasp the overall situation for the next 10 to 20 years. (Editor: Pan Yi-ching) 1150407
Li Chun stated that some worry about the US$250 billion investment by Taiwanese companies in the US hollowing out Taiwan. However, he estimated that Taiwan's investment in China over the past 40 years was approximately US$800 billion to US$1 trillion, and Taiwan not only was not hollowed out but continued to advance. He believes that investing in the US is a trend of the times, and he sees opportunities far outweighing challenges.
Li Chun analyzed that the current Taiwan-US Reciprocal Trade Agreement (ART) is the best solution for balancing benefits and impacts under Taiwan's current situation. This is because Taiwan faced significant restrictions at the beginning of negotiations, primarily due to the highest growth rate in the US trade deficit with Taiwan, which increased from US$74 billion in 2024 to US$146.8 billion in 2025, and may continue to rise this year. This trend is not caused by the agreement but by the shift of supply chains to the US. Therefore, the Taiwan-US agreement accelerates the removal of artificial barriers and does not force unwilling companies to invest in the US.
He pointed out that achieving a result similar to Japan and South Korea this time is not only the best outcome Taiwan can get but also reflects a 'friendship price' in Taiwan-US relations, hoping both sides deepen integration.
Regarding the expiration of the legal basis for US reciprocal tariffs, Li Chun believes that the US has many tools to maintain the legal basis for tariffs. In France and Belgium, there is an architectural preservation method called 'Facadism,' which allows the facade of a building facing the street to retain its original appearance while the rest can be rebuilt and renovated. Currently, the US goal is to use 'Facadism' to maintain the tariff structure with various countries before the ruling, but to rebuild tariff legal policies. He predicted that when it is announced by the end of July, the underlying legal basis will be replaced by Section 301, but Taiwan will still be able to maintain a 15% tariff without MFN叠加.
Li Chun noted that the cost and price for the US to maintain the tariff facade are far lower than renegotiating. Therefore, if the prediction is correct, Taiwan will gain time from now on to accelerate preparations. It should be assumed that all tariffs will be the same in about four months. The government can quickly assist the automotive and agricultural product sectors in adjusting, and enterprises can maintain their layouts. This appears to be the safest arrangement at present.
He believes that the global semiconductor supply chain has moved towards a bifurcated pattern, with strategic industries continuing to decouple, and reliance and risks on critical mineral resources decreasing. Additionally, new technological battlefields, including dual-use AI and unmanned control, advanced computing and quantum technology, new energy, new materials, biotechnology, unmanned autonomous systems, and undersea technology, are all important areas for entering the US and will determine the outcome of the future US-China strategic confrontation.
Li Chun concluded that Taiwan's economic security has three elements: first, maintaining competitiveness in the global supply chain, whether in Hsinchu, the US, or Europe – 'our King Maker importance far outweighs a Hsinchu address'; second, safeguarding economic autonomy; and third, safeguarding economic resilience. The US plays a key role in these three elements, so the Taiwan-US agreement is a foundation and an important legal beginning supporting future deepening of Taiwan-US cooperation. In the future, both sides will need more agreements to facilitate smoother interactions, which is the best way to help Taiwan grasp the overall situation for the next 10 to 20 years. (Editor: Pan Yi-ching) 1150407