Taiwan Navigates U.S. Tariff Challenges Amid Ongoing Negotiations

Taiwan's President, Lai Ching-te, announced on Friday that the recently imposed 20% tariff by the Trump administration on imports from Taiwan is a temporary measure. The government remains hopeful of negotiating a more favorable rate. Key sectors such as semiconductors and technology will face distinct U.S. tariffs yet to be finalized.

President Trump's Thursday executive order established tariffs ranging from 10% to 41% on imports from various trade partners. Although Taiwan's 20% tariff is lower than the 32% threatened earlier, it surpasses the 15% tariffs Japan, South Korea, and the European Union secured through trade agreements.

Lai emphasized that the 20% tariff was not Taiwan's target and reassured continued negotiations to secure a better rate. A U.S. official confirmed that ongoing negotiations are on track. The conclusion of a national security probe will determine tech-related tariffs. Taiwan, affected by its significant trade deficit with the U.S., views these talks as vital for economic and defense collaboration.

(With inputs from agencies.)