TAIPEI (TVBS News) — Taiwan secured a landmark trade agreement with the United States early Friday (Jan. 16), reducing tariffs to a maximum of 15%. Vice Premier Cheng Li-chiun (鄭麗君) of the Executive Yuan (行政院), Taiwan's cabinet, announced the deal in Washington, calling it a significant bilateral achievement.
Cheng said Taiwan ranks as the sixth-largest source of the U.S. trade deficit, driven primarily by semiconductor and electronic component exports. She emphasized that Taiwan secured four key negotiation goals, including equal tariff reductions to 15%. Taiwan becomes the first country to obtain the most favorable tariff treatment for semiconductors and related U.S. investments, along with benefits for automotive components under Section 232 tariffs.
Cheng highlighted Taiwan's strategic approach, termed the "Taiwan model," which opens pathways for local businesses into the U.S. supply chain. The approach enhances Taiwan's tech industry's global competitiveness and fosters mutual investments in high-tech sectors between the two nations. The 15% non-stacking tax rate aligns with rates for other U.S. allies, including Japan, South Korea, and the European Union, significantly enhancing the competitiveness of Taiwan's traditional industries, such as machine tools and hand tools.
Both parties are conducting a legal review of the trade agreement and plan to sign documents with the U.S. Trade Representative at a later date. Following the signing, the detailed text will undergo legislative scrutiny in accordance with legal procedures. The agreement promises to fortify Taiwan's economic standing and deepen its strategic partnership with the United States. ◼ (At time of reporting, US$1 equals approximately NT$31)