Taiwan, US Reach Tariff Consensus Amidst Ongoing Negotiations
Progress reported in technical talks ahead of August 1 deadline
Taiwan’s reciprocal tariff rates with the United States are nearing a resolution, with both sides reporting significant progress in technical consultations. Discussions have covered key areas including tariffs, non-tariff trade barriers, and supply chain resilience.
Key Areas of Agreement
The Executive Yuan confirmed that negotiations have yielded a certain consensus on multiple fronts. These include measures aimed at facilitating trade, strengthening supply chain resilience, and ensuring economic security. Discussions also encompassed investment and procurement, as Taiwan and the U.S. work towards a joint statement.
Executive Yuan spokesman Li Huizhi disclosed that the negotiating teams have made headway. “Both teams affirm that the progress of the negotiations continues,” she stated at a press conference following an Executive Yuan meeting. The talks have been intensive, particularly as the U.S. juggles simultaneous negotiations with numerous countries before the July 31 deadline.
Neighboring Nations Adjust Rates
The upcoming tariff changes follow recent announcements from neighboring Asian economies. Japan and South Korea have seen their reciprocal tariff rates lowered to 15%, while Vietnam and the Philippines have set their rates at 20% and 19% respectively. Taiwan’s negotiating principles emphasize deepening economic and trade relations, mutual benefit, and complementarity.
The stated goals for Taiwan are to safeguard national interests, protect industrial and public health, and ensure food security. Ultimately, Taiwan aims to promote a balanced bilateral trade relationship with the U.S. and enhance cooperation in diverse sectors, including science, technology, and national security.
Future Announcements Pending
Regarding the specific announcement of new tariff rates, **Li Huizhi** explained that the public will be informed once the U.S. government’s decision-making process is finalized. The urgency is high, with the new U.S. reciprocal tariffs set to take effect on August 1st.
The U.S. Customs and Border Protection reported processing over 27 million import entries in May 2024 alone, highlighting the substantial volume of trade impacted by these tariff adjustments (U.S. Customs and Border Protection May 2024 Trade Statistics).
