TAIPEI (TVBS News) — Hsu Shu Po (許舒博), chairman of Taiwan's General Chamber of Commerce of the Republic of China (全國商業總會), rated the island's current 20% tariff rate as merely "60 out of 100" during the 2025 Taiwan Culinary Exhibition opening ceremony. The business leader highlighted how this temporary assessment exceeds Japan and South Korea's rates by five percentage points. Hsu stressed that this differential creates substantial pressure on Taiwan's industrial sectors.
Hsu cautioned that maintaining Taiwan's 20% tariff rate would cost companies market share in sectors competing directly with Japan and South Korea, particularly machine tools and electronic components. The chairman acknowledged Taiwan's resilience in finding independent solutions but warned that combining the 20% tariff with New Taiwan dollar appreciation would intensify industrial pressures. This dual economic challenge threatens Taiwan's competitive positioning in global markets.
Japan and South Korea pledged investments of US$550 billion (around NT$16.5 trillion) and US$350 billion (around NT$10.5 trillion) respectively into American manufacturing, particularly semiconductors and shipbuilding. Taiwan's ability to match these substantial financial commitments remains uncertain. Hsu anticipates difficulties securing a 15% rate without significant concessions and advocates for government coordination of industry resources during negotiations.
President Lai Ching-te (賴清德) disclosed through Facebook that America designated the 20% rate as temporary. Taiwan's president indicated that future bilateral agreements could yield tariff reductions for the island. Lai confirmed that technical consultations have concluded while emphasizing that broader negotiations will persist between the two governments.