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Taiwan, US reach ‘general consensus’ on trade deal, tariff talks advance
Taiwan has reached a "general consensus" with the United States on a trade deal, the democratic island's negotiators said Tuesday, after months of talks. "The goal of the US-Taiwan tariff negotiations has always been to seek reciprocal tariff reductions without stacking tariffs, and to obtain preferential treatment under Section 232 for semiconductors, semiconductor derivatives, and other items," the Office of Trade Negotiations said in a statement, adding there was a "general consensus" on these issues.
Taipei: Taiwan has reached a "general consensus" with the United States on a trade deal, the democratic island's negotiators said Tuesday, after months of talks.
Taiwan and the United States began negotiations in April to hash out a trade deal after US President Donald Trump slapped a 32 percent tariff on Taiwanese exports, which was later lowered to 20 percent, as part of his sweep of measures against dozens of trade partners.
Taiwanese President Lai Ching-te has pledged to boost investment in the United States and increase defence spending as his government tries to further reduce the levy on its shipments, as well as avoid a toll on its semiconductor chip exports.
"The goal of the US-Taiwan tariff negotiations has always been to seek reciprocal tariff reductions without stacking tariffs, and to obtain preferential treatment under Section 232 for semiconductors, semiconductor derivatives, and other items," the Office of Trade Negotiations said in a statement, adding there was a "general consensus" on these issues.
Section 232 refers to part of the US Trade Expansion Act that allows tariffs to be imposed when national security is found to be at risk.
"Both sides are currently discussing the schedule for a concluding meeting, and an announcement will be made once it is confirmed," the statement said.
Taiwan's trade officials also vowed to provide "a complete explanation of the negotiations and the agreement" to the opposition-controlled parliament and the public.
American soil
Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics.Trump has previously accused Taiwan of stealing the US chip industry and his administration had made clear it wants more of the critical technology made on American soil.
The US government launched investigations under Section 232 into semiconductors and chip-making equipment last year.
Taiwan's trade surplus with the United States was the seventh highest of any country in 2024, reaching US$73.9 billion.
More than half of its exports to the United States are information and communications technology products, including semiconductors.
Lai has been at pains to find favour with Trump, vowing to raise defence spending to more than three percent of GDP this year and five percent by 2030.
TSMC, which is the world's largest contract chip maker, also has pledged to invest an additional US$100 billion in the United States.
But Taiwanese Deputy Foreign Minister Francois Chih-chung Wu told AFP recently that Taiwan planned to keep making the "most advanced" chips on home soil.Add as a Reliable and Trusted News Source Add Now!
Source: EconomicTimes
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