Taipei, Taiwan - The president of Taiwan said on Tuesday that trade tensions between the United States and Taiwan are just "frictions between friends" as tariff negotiations and tariff negotiations in Washington.

U.S. President Donald Trump imposed a 32% tariff on all imports from Taiwan last month as part of his comprehensive duties on all U.S. trading partners.

Subsequently, tariffs on Taiwanese goods were reduced to 10% within 90 days for trade negotiations. Officials from both sides held their first round of dialogue last month, followed by another meeting in the coming weeks.

In his speech marking his first year as president and focusing on Taiwan's strategies to weaken the impact of U.S. tariffs and China's military threat, Lai Ching-te reached a tone of tolerance despite the tax pressure.

He said the United States and Taiwan have long been "cooperating and encouraged each other to grow." "There will inevitably be friction between friends, but ultimately reconciliation."

He added: “Even if there is a difference, as long as there is a foundation for trust and sincere dialogue, they can better understand each other and deepen their friendship.”

Traditionally, the United States is Taiwan’s most powerful unofficial ally in the face of China’s military threat, which ally believes is an island that has been self-destructed and will be recaptured by force if necessary. Washington is bound by its laws to provide Taipei with means to defend itself.

Lai said Taiwan will continue to enhance its defense capabilities through foreign military procurement and domestic weapons development and "shoulder shoulder" with its allies to "exert deterrence".

"We will prepare for avoiding war and achieving the goal of peace," he said.

He has been holding a possibility of talks with Beijing, saying that "Taiwan is very willing to exchange and cooperate with China" as long as there is mutual respect and dignity.

Taiwan’s economy is backed by a large number of semiconductor companies that offer microchips on a global scale, as well as other electronics, advanced manufacturing and green technology manufacturers.

Lai said he will continue to encourage foreign investment in Taiwan, citing U.S. technology company NVIDIA announced on Monday about opening a new office in northern Taipei.

NVIDIA's Taiwan-born CEO Jensen Huang also announced that his company will work with TSMC, technology company Foxconn and the Taiwan government to build artificial intelligence supercomputers on the island.

He also supports increased investment in Taiwan companies in the United States

In March, TSMC, the island’s largest chipmaker, responded to Trump’s tariff threat by pledging a $100 billion investment in the U.S., and earlier pledged more than $65 billion in three Arizona plants, one of which began production late last year.

However, Lai's controversial proposal to completely eliminate tariffs on American goods "on a reciprocity basis" has triggered protests from Taiwanese farmers in addition to encountering the procurement of American products.

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Johnson Lai, an Associated Press video reporter in Taipei, Taiwan, contributed to the report.