ISSUE 308                                                                                                August  18, 2025
U.S. and Japan Express Doubts
as International Suspicion of Lai Grows  
● This Week in Taiwan: 
Other Important Events This Week




Publishers
taiwanweekly2019@gmail.com
The United States sharply raised tariffs, shattering President Lai Ching-te’s dream of decoupling from China and aligning with the U.S.. Taiwan is now caught in internal and external pressures, ending up with a total loss. 
Featured Editorial

Dream of “Leaving China for America” Leaves President Lai Trapped

 

After the United States announced a 20-percent reciprocal tariff on Taiwan, it went further by imposing a 100-percent tariff on semiconductors. President Lai Ching-te claimed the 20-percent levy was only “temporary,” yet the Office of Trade Negotiations, Executive Yuan, confirmed that the 20 percent would be added on top of existing tariffs. The Lai administration kept the public in the dark, while the Democratic Progressive Party (DPP) continued to chant slogans about “Taiwan and the United States getting rich together.” On the one hand, the government struggles within the black box of U.S.-Taiwan negotiations; on the other, it longs for American favor. U.S. President Donald Trump’s tariff stick appears not to have shaken President Lai’s “decouple from China, embrace America” dream awake.
Featured Opinion
taiwanweekly2019@gmail.com
U.S.-Taiwan relations have cooled, with tariff negotiations failed, and transit obstructed. Experts criticize the Lai administration for losing direction and drifting off course.

Taiwan Has Lost Direction, Not Trump

 

Recently, the ruling party has faced two major setbacks: a crushing defeat in the first round of recall votes and failure in tariff negotiations with the United States. Taiwan now faces a 20-percent reciprocal tariff on top of existing rates—higher than those imposed on Japan, South Korea, and even some Southeast Asian countries—while reports emerged that a planned U.S. transit stop was canceled due to Washington’s concerns over Beijing’s reaction. Even voters loyal to the ruling party cannot deny that U.S.-Taiwan relations are no longer the diplomatic highlight that they were under former President Tsai Ing-wen.
Featured Commentary
taiwanweekly2019@gmail.com
President Lai only briefly mentioned the “end of the war” without acknowledging the 80th anniversary of the Republic of China’s War of Resistance Against Japan. This is not only a dereliction of duty but also a disgrace to his presidential role.

President Lai Abandons "Resistance War Against Japan" Discourse, Undermining Taiwan's Identity

 

This year marks both the end of World War II and the 80th anniversary of the Republic of China’s victory in the War of Resistance against Japanese Aggression. Yet President Lai Ching-te, as head of state of the Republic of China (R.O.C.), merely issued a Facebook post yesterday to commemorate the occasion, without mentioning the R.O.C. or “War of Resistance” even once, instead downplaying this history with the term “end of the war.” At a time when the Communist China is actively commemorating the “Victory of the War of Resistance,” President Lai has voluntarily relinquished discourse over the war, erasing the blood-soaked history of R.O.C. military and civilians who fought and resisted aggression.
This Week in Taiwan
taiwanweekly2019@gmail.com
After the recall vote, President Lai’s approval rating has plummeted. Former Vice President Annettee Lu fired the first shot, urging President Lai to resign as Democratic Progressive Party (DPP) chairman and focus on governing the country.

August 11:

During a legislative session, Minister of the Interior Liu Shyh-fang claimed that the Republic of China and the People's Republic of China are not subordinate to each other and added that the government recognizes the PRC. The opposition accused Liu of violating the Constitution and promoting a "New Two-State Theory" in the Legislative Yuan. In response, the Executive Yuan and Office of the President quickly sought to contain the fallout. Premier Cho Jung-tai emphasized that cross-strait relations would be based on the Constitution, while President Lai Ching-te stated that Taiwan has no plans to change the status quo.

 

August 11:

Chairman Huang Kuo-chang of the Taiwan People's Party (TPP) declared his candidacy for the 2026 New Taipei mayoral race. He called on the Kuomintang (KMT) to jointly support the strongest opposition candidate. In a recent interview, Huang stated that the 2028 presidential election must result in President Lai's stepping down and urged the KMT and TPP to build goodwill and seek common ground despite differences.

 

August 11:

The Ministry of Environment (MOENV) approved the environmental impact assessment for the fourth liquefied natural gas (LNG) terminal at Keelung's Hsieh-ho Power Plant. However, environmental groups released reports from the Keelung City Government and Taiwan Power Company showing clear evidence of pollution, including 11 newly identified sites with excessive contamination. Critics accused the MOENV of serious negligence. The Keelung City Government plans to officially designate the plant as a pollution control site, potentially halting construction.

 

August 11:

Mainstream Japanese media, both conservative and liberal, criticized the Democratic Progressive Party's (DPP) mass recall efforts against opposition lawmakers. Scholars warned that negative public opinion in Japan regarding President Lai's leadership style is becoming more visible, suggesting that Lai is losing Japan's trust. 

 

August 13:

Taipower initiated six major safety assessments for restarting the Third Nuclear Power Plant, raising hopes for extending its operation. However, the Executive Yuan stated that even with favorable evaluations, it would take at least three years to resume power generation. President Lai told the DPP's Central Standing Committee that "nuclear safety is a scientific issue, not something that a referendum can resolve," and urged supporters to vote "no" in the August 23 referendum on restarting the plant.

 

August 14:

The Executive Yuan issued a draft amendment to the Special Act for Strengthening Economic Resilience, increasing the budget from NT$545 billion (about US$18.1 billion) to NT$590 billion (about US$19.6 billion). Key additions include NT$20 billion (about US$670 million) for power system upgrades, NT$4 billion (about US$133 million) for vulnerable groups, and NT$20 billion reserved for industrial support. Opposition parties questioned the move, arguing that post-disaster reconstruction funds already included power system enhancements and accused the government of using vague justifications to cover Taipower's financial shortfalls. 

 

August 14:

The Ministry of Labor estimated that 30,000 to 40,000 workers could be affected by United States reciprocal tariffs. However, labor groups believe that the impact could reach 300,000 workers. A survey by 104 Job Bank found that 65 percent of companies reported operational disruptions and are becoming more conservative in hiring.

 

August 14:

After the recall vote, approval ratings for President Lai and Premier Cho dropped shortly. Cho signaled a potential cabinet reshuffle, saying "necessary personnel changes will be made when needed." Former Vice President Annette Lu was the first to speak out, urging Lai to resign as DPP chairman to focus on national governance and become a "president for all people." Lu warned that public patience and confidence are waning and called on the administration to seize the moment for reform.
Published since 2019 by the Fair Winds Foundation and Association of Foreign Relations, Taiwan Weekly provides in-depth report and analysis of the major issues facing Taiwan.

The conclusions and recommendations of any Taiwan Weekly article are solely those of its author(s) and do not reflect the views of the institutions that publish the newsletter.

6F, No. 261, Sec. 3, Nanjing E. Rd., Songshan Dist., Taipei City 105, Taiwan (R.O.C.)

| |
View this email in your browser
You are receiving this email because of your relationship with Taiwan Weekly. Please reconfirm your interest in receiving emails from us. If you do not wish to receive any more emails, you can unsubscribe here.