TAIPEI (TVBS News) — U.s. President Donald Trump will unveil a reciprocal tariff policy Friday (Aug. 1), though specific rates for Taiwan remain undisclosed amid ongoing negotiations. Reports suggest the Taiwanese government plans to invest US$400 billion (around NT$12 trillion) in exchange for a preferential 15% tariff rate. This potential agreement has sparked intense debate among Taiwanese legislators about its far-reaching economic implications for the island.
Kuomintang legislative caucus whip Fu Kun-chi (傅崐萁) raised serious concerns about Taiwan's financial capacity to meet such commitments. The veteran legislator from Taiwan's main opposition party (KMT, 國民黨) noted that 90% of Taiwan's foreign exchange reserves are already invested in U.S. Treasury securities, severely limiting available funds. Fu emphasized the critical need for legislative approval of any tariff agreement with the United States.
Fu emphasized Taiwan's heavy reliance on exports and warned that hasty investment decisions could dangerously destabilize the island's economy. The opposition leader urged the government to renegotiate terms more carefully, ensuring Taiwan's national interests are properly safeguarded throughout the process. Fu reiterated the importance of the United States as a strategic partner but stressed Taiwan must evaluate its capacity to fulfill such agreements without compromising its economic foundation.
Vice Premier Cheng Li-chun (鄭麗君) remains in Washington conducting final negotiations on the comprehensive trade agreement. Bloomberg reported that the United States has revealed its most favorable tariff rate to Taiwan during these crucial discussions. The U.S. demands Taiwan match Japan and South Korea's substantial investment levels while proposing Taiwan open its market to American pork and beef imports and reduce automotive tariffs to 5%. ◼ (At time of reporting, US$1 equals approximately NT$29.928)