US-Taiwan Tariff Negotiations: A Path Towards Trade Balance
The United States has imposed a 20% tariff on Taiwanese goods, initially proposed at 32%, as part of reciprocal tariffs under President Trump. Despite a higher rate than regional peers, negotiations continue for a favorable rate. Semiconductor products are exempt, and further talks include supply chain and Section 232 issues.

- Country:
- Taiwan
The United States has levied a 20% tariff on imports from Taiwan, a measure dubbed 'temporary' by Taiwanese President William Lai. He anticipates further discussions to negotiate a reduced rate, as reported by Taipei Taiwan. The tariffs are part of the US's strategy to address trade imbalances through 'reciprocal' measures.
The tariffs targeting semiconductors, electronics, and information technology products will be assessed independently under future US sector-specific legislation, as per Taipei Taiwan. The newly imposed tariff is among several 'reciprocal' actions initiated by US President Donald Trump, coinciding with an impending deadline to finalize trade agreements under his administration.
Reports from Taipei indicate that the initial US proposal was a steep 32% tariff, later lowered to 20%. This rate surpasses those imposed on regional competitors like Japan and South Korea, which are subjected to a 15% tariff. The tariff is set to be enacted next Thursday following its formalization through an executive order signed by Trump.
According to a Barclays Bank economist, crucial Taiwanese exports such as semiconductors are largely shielded; the average effective tariff on imports from Taiwan will rise to 8.3% from 5.8%. 'The 20% tariff was never Taiwan's aim; negotiations will persist in pursuit of a rate more favorable to Taiwan,' Lai stated during a news briefing.
Trade dialogues between the US and Taiwan are ongoing, confirmed by a US official on Friday, who highlighted the proximity of a final accord. 'The interim rate is lower than the initially proposed rate and significantly lower than for numerous other major trading partners currently in negotiations,' the official commented.
The official further mentioned that Taiwan's offer was well-received and that both parties are nearing a final agreement. Meanwhile, Taiwan awaits results from a US investigation under Section 232 of the Trade Expansion Act, focusing on sectors like semiconductors, a key export exempted from the new tariffs.
The Executive Yuan announced that Taiwan and the US will persist in negotiations, with future talks also covering supply chain collaboration and Section 232 investigation matters. 'Should terms be agreed upon, there could be a further reduction in reciprocal tariff rates and preferential tariff treatments relating to the Section 232 investigation,' shared Lai, emphasizing the impact of final rates on Taiwan's industry. (ANI)
(With inputs from agencies.)
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