Taiwan pushes for lower U.S. tariffs amid ongoing trade talks

 

Taiwan’s cabinet says it is still negotiating with the United States for more favourable tariff terms after a 20% levy was imposed under President Donald Trump. Vice Premier Cheng Li-chiun told reporters on Monday that the goal is to secure a “better and more reasonable” tariff rate, with talks continuing despite a parallel U.S. national security investigation. This probe, conducted under Section 232 of the U.S. Trade Expansion Act of 1962, is assessing potential threats linked to certain imports. Taiwan currently holds the sixth-largest trade deficit with the United States, with semiconductors accounting for around 90% of that gap. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chip maker, supplies chips to global technology leaders including Nvidia. The Vice Premier confirmed that the Taiwanese government is ready to update parliament on the progress of these negotiations.

The U.S. has indicated that tariffs on semiconductors, electronics, and information and communication technology (ICT) products Taiwan’s main exports will be decided separately under sector-specific measures. These sectors are central to Taiwan’s economy and to its trade with the U.S., making the upcoming tariff decisions particularly significant for both sides. Taiwanese officials hope to run the tariff negotiations concurrently with the U.S. national security review, aiming to reach a compromise that preserves market access while addressing American concerns. The outcome could influence supply chains for critical components used in everything from smartphones to advanced AI systems. If Taiwan succeeds in reducing tariffs, it could ease pressure on its export-driven economy and maintain its competitive edge in global technology markets. For Washington, the talks also carry strategic weight, given Taiwan’s role in semiconductor supply during a period of heightened U.S.-China tensions. Both sides are expected to continue discussions over the coming months, with any agreement potentially shaping trade and technology policy for years to come.

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