TAIPEI (TVBS News) — Taiwan People's Party (民眾黨) voiced strong concerns on Friday (Jan. 16) over Taiwan's recent trade agreement with the U.S. regarding the tariffs. The party criticized the government's lack of democratic oversight in negotiations, arguing that the deal risks Taiwan's industrial future by potentially using the nation's resources as political leverage.
The agreement, announced by the Executive Yuan (行政院), Taiwan's cabinet, includes a mutual reduction of tariffs to 15% without adding the most-favored-nation rate. It also secures preferential treatment for semiconductors and expands cooperation on supply chain investments. The TPP expressed apprehension over U.S. Commerce Secretary Howard Lutnick's aim to shift 40% of Taiwan's semiconductor production to the U.S., which the TPP views as a threat to Taiwan's economic stability.
The TPP criticized the government's promise to back US$250 billion in financing with credit guarantees, labeling it as a one-sided financial drain on Taiwanese taxpayers. The party warned that any change in U.S. policy or failed investments could burden Taiwan. Additionally, the TPP disapproved of Taiwan's investment in the U.S. energy sector, particularly given Taiwan's domestic energy challenges.
While acknowledging geopolitical pressures, the TPP urged the government to negotiate terms that strengthen Taiwan's resilience rather than offering concessions to appease U.S. President Donald Trump. The party called for transparency from the ruling party about the extent of Taiwan's compromises in this agreement.