Taiwan's President Lai Faces Setback After U.S. Cancels New York Stop

U.S. reportedly blocks President Lai Ching-te’s planned New York transit, prompting concerns in Taipei and among regional allies.

July 29, 2025Clash Report

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Taiwanese President Lai Ching-te’s planned stopover in New York was reportedly canceled by the U.S., marking a significant diplomatic test for Taipei as Washington intensifies trade talks with China. The decision has raised concerns over whether the Trump administration is deprioritizing its support for Taiwan to smooth relations with Beijing.

China Pressures U.S. as Taiwan Visit Altered

According to the Financial Times, Washington blocked Lai’s transit through New York—originally part of a scheduled Latin America tour including Paraguay, Guatemala, and Belize—after objections from China. The U.S. and China are concurrently engaged in sensitive negotiations aimed at extending a tariff truce, raising speculation that the canceled stop was a concession to Beijing.

Taiwanese presidential spokesperson Karen Kuo cited typhoon recovery efforts and “regional developments” as reasons for postponing the trip. However, Taipei-based analyst Kuang-shun Yang interpreted the move as a strategic attempt by Washington to avoid provoking China during ongoing talks.

History Repeats Itself

The incident draws parallels with past U.S. decisions, including a delay in F-16V fighter jet sales to Taiwan during Trump’s first term. “This symbolic move may show that even key priorities like Taiwan are sidelined temporarily in favor of trade,” Yang noted.

China observer Bill Bishop wrote that the decision—combined with Lai’s recent political setbacks at home—has weakened his standing. He questioned whether Beijing would now reciprocate by de-escalating military activities around Taiwan or exploit the diplomatic softening.

Trade Talks Continue

Despite the diplomatic friction, the U.S. and Taiwan are finalizing a reciprocal tariff agreement. Vice President Hsiao Bi-khim confirmed that negotiators were working “around the clock” to reach a deal covering trade balance, tech cooperation, and investments. Trump’s earlier threat to impose a 32% tariff on Taiwanese exports was suspended to facilitate negotiations.

Analysts say the outcome could involve tariff relief, increased arms sales, and pro-Taiwan legislative gestures in the U.S. Congress.

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