TAIPEI (TVBS News) — Premier Cho Jung-tai (卓榮泰) welcomed Vice Premier Cheng Li-chiun (鄭麗君) and her negotiating team at Taoyuan International Airport early Monday (Jan. 19). The delegation returned after securing Taiwan's designation as "most favored ally" among major U.S. trade deficit countries following final talks in Washington on Jan. 15. The nine-month negotiations yielded landmark agreements on tariffs, semiconductors, and artificial intelligence cooperation.
The agreement establishes Taiwan's reciprocal tariff rate at 15% without additions to the existing Most Favored Nation rate, Cheng announced. Semiconductors and derivative products receive preferential treatment under Section 232 tariffs, the U.S. trade measure targeting national security concerns. Both nations committed to expanding supply chain investment and AI strategic partnership. Cheng said this provides "a strong boost" to Taiwan's semiconductor and AI industries' global positioning.
Cheng credited the negotiation team's success to collective efforts across Taiwan's government, including President Lai Ching-te, Vice President Hsiao Bi-khim, and representatives from multiple ministries. Premier Cho maintained close contact throughout the process, Cheng revealed. "Every time I arrived in Washington, [Premier Cho] was the first to check on my safe arrival and offer encouragement," she said.
Taiwan signed a memorandum of understanding on investment with the U.S. Department of Commerce, Cheng announced upon her return. A comprehensive Taiwan-U.S. reciprocal trade agreement with the U.S. Trade Representative is expected within weeks. Officials described the upcoming signing as "the last mile" of this nine-month trade negotiation journey that elevates Taiwan's standing among Washington's major trading partners. ◼