Washington tariff discussions in progress, as per ministry updates

US-Taiwan Tariff Negotiations: A Closer Look

Washington tariff discussions in progress, as per ministry updates

The ongoing tariff negotiations between the US and Taiwan are progressing smoothly, with at least one round of in-person talks concluded recently (August 2025). The Taiwanese negotiation team, led by Vice Premier Cheng Li-chiun, includes government officials, academia, and industry representatives, indicating a high-level and coordinated approach to these talks.

Taiwan seeks several benefits from these negotiations, including:

Improving reciprocal tariff rates, aiming toward a bilateral zero-tariff arrangement similar to the US-Mexico-Canada agreement.
Expanding US purchases from Taiwan to reduce the trade deficit, with Taiwan preparing procurement inventories covering agriculture, industry, petroleum, natural gas, and military goods.
Increasing Taiwanese investment in the US, especially in semiconductors, electronics, ICT, petrochemicals, and natural gas, to deepen economic cooperation and promote mutual benefits, while encouraging reciprocal US investment in Taiwan.
Eliminating non-tariff barriers that the US considers indicators of fair trade, aiming for smoother negotiation progress.
Resolving longstanding US concerns over high-tech export controls and illegal transshipment/dumping practices (“origin washing”).

This negotiation framework is part of the broader US policy on reciprocal tariffs implemented in 2025 under various executive orders aimed at addressing trade imbalances and security issues, which also affect Taiwan, especially regarding tariffs on aluminum and steel exports to the US. While tariff levels on Taiwanese aluminum and steel rose to 25% earlier this year, ongoing talks suggest both sides seek to reduce barriers and enhance cooperation through these negotiations.

Former KMT legislator Jason Hsu has urged Taiwan to remain united during the tariff talks, emphasizing the importance of public solidarity and political party restraint in criticizing each other. The Ministry of Foreign Affairs in Taipei plans to continue talks with the US on tariffs, demonstrating its commitment to maintaining the close and constructive Taiwan-US relationship.

The ministry considers the current tariff rate as temporary and is focusing on demonstrating to the administration of US President Donald Trump that Taiwan is an essential partner in rebooting the US manufacturing industry and leading in artificial intelligence development. The goal of these talks is to secure tariff rates beneficial to Taiwan and an exemption from tariff stacking.

The tariff talks are not solely economic in nature but could impact the survival of certain Taiwanese industries and the nation's global standing. Bipartisan support for Taiwan is demonstrated by US senators and representatives visiting the nation and passing legislation. The Trump administration's focus is on deterring China and maintaining the security of the Indo-Pacific region, making these negotiations particularly significant for Taiwan.

In summary, Taiwan aims for tariff reductions, expanded trade and investments, removal of trade barriers, and resolution of export control issues to foster a more balanced and closer economic relationship with the US through the current tariff negotiations. The negotiation process, however, is being condensed by the Trump administration, making transparency difficult.