TAIPEI (TVBS News) — Taiwan faces mounting pressure to respond to America's newly announced 20% reciprocal tariff rate, with Vice Premier Cheng Li-chun (鄭麗君) pledging continued diplomatic negotiations to secure more favorable trade terms. Economic Affairs Minister J.W. Kuo (郭智輝) convened with industrial leaders in Taiwan's southern port city of Kaohsiung on Monday (Aug. 4). The discussions centered on potential responses, including a massive US$400 billion (approximately NT$11.96 trillion) investment proposal that could reshape Taiwan's economic strategy.
Minister Kuo posed critical strategic questions to assembled business executives, weighing whether Taiwan should pursue direct investment in American markets or mobilize domestic capital resources. The minister actively solicited creative solutions from industry leaders to strengthen Taiwan's competitive position and inform upcoming government policy decisions. Separate consultations with precision machinery manufacturers and motorcycle parts suppliers addressed specific sectoral concerns regarding evolving tariff structures and Taiwan dollar appreciation pressures.
Taiwan's negotiation strategy targets achieving a preferential 15% tariff rate comparable to agreements secured by Japan and South Korea. Officials are exploring comprehensive market access for both agricultural and industrial products. Progress in these bilateral discussions remains uncertain, but significant attention has focused on CPC Corporation's (中油), Taiwan's state-owned energy company, reported plans to purchase 6 million tons of liquefied natural gas from Alaska as a potential cornerstone of expanded Taiwan-U.S. economic cooperation.
Alaska Governor Michael Dunleavy characterized Taiwan's proposed liquefied natural gas procurement as potentially the largest single order in the state's history, according to the Central News Agency (CNA, 中央社), Taiwan's official news agency. Shipments are scheduled to commence in 2030. CPC Corporation has confirmed the preliminary agreement while pursuing upstream investment opportunities, though key contractual details remain under negotiation. The Ministry of Economic Affairs (MOEA, 經濟部) clarified that Minister Kuo's US$400 billion figure represented a hypothetical scenario rather than a firm commitment. ◼ (At time of reporting, US$1 equals approximately NT$29.890)