TAIPEI (TVBS News) — Taiwan secured a temporary 20% tariff rate from the United States on Friday (Aug. 1), down from an initial 32%, following intense negotiations between the two nations. President Lai Ching-te (賴清德) announced the development at a press conference, emphasizing that talks will continue as Taiwan seeks an even lower rate. The president called the current agreement a stepping stone rather than a final settlement in the ongoing trade discussions.
The U.S. informed Taiwan's negotiation representative, Vice Premier Cheng Li-chun (鄭麗君), of the 20% tariff earlier that day. Since April 2, when the U.S. implemented new tariffs globally, Taiwan and the U.S. have conducted four in-person negotiations and several online meetings.
Faced with opposition requests to disclose deals and negotiation processes with the U.S., President Lai emphasized that confidentiality agreements bind all parties in international trade negotiations. This addresses opposition parties' criticism regarding the lack of transparency in the government's approach.
President Lai mentioned that any content affecting congressional authority in dealings with the U.S. must be reported to and approved by the Legislative Yuan (立法院). Regarding Section 232, which concerns semiconductor industry tariffs imported to the U.S., the negotiation team adheres to principles including protecting industries, maintaining national interests, and deepening economic relations with the U.S.
Earlier Friday, Taipei Mayor Chiang Wan-an (蔣萬安) criticized the government's handling of the 20% tariff. He argued that combined with a 12% currency loss, it severely undermines Taiwanese businesses' competitiveness. He mentioned authorities should closely monitor neighboring countries' deals, noting Taiwan's tariffs should be lower than those of Japan, South Korea, Indonesia, and the Philippines.
The Kuomintang (KMT, 國民黨) and Taiwan People's Party (TPP, 台灣民眾黨) echoed these sentiments, urging the government to secure lower tariff rates. Both parties condemned what they called the government's inability to negotiate effectively.
SinoPac Securities Corporation (永豐證券) noted Taiwan's semiconductor industry faces significant pressure from the U.S. Section 232 investigation under the Trade Expansion Act of 1962. This section could impose additional tariffs of 25% to 50% on semiconductors and related equipment, further increasing costs for Taiwanese investors and the supply chain. If these measures coincide with reciprocal tariffs, import costs and competitive burdens will rise substantially.
The Taiwan-U.S. Economic and Trade Working Group issued a statement affirming both parties' commitment to ongoing negotiations to finalize an agreement. They have already scheduled the next meeting for continued discussions.
President Lai did not disclose temporary terms and conditions negotiated with the U.S. He only reiterated the broader strategy to deepen economic ties and enhance cooperation in national security and technology. The president emphasized Taiwan's negotiation principles of mutual benefit and complementarity in future discussions.