U.S. Discussions with Government's Second-in-Command Resume – Focus remains on Trade Matters
Taiwan and the United States have been engaged in four rounds of bilateral tariff negotiations under the U.S. reciprocal tariff regime, with the latest round led by Vice Premier Cheng Li-chiun. The negotiations were held in Washington, and as of early August 2025, a potential reciprocal tariff rate increase up to 32% looms over Taiwanese goods. However, the tariff rate increase has been delayed until August 7, 2025, with a likely tariff set around 20% on all products.
The U.S. government, through an executive order issued on July 31, 2025, has set new reciprocal tariff rates for various countries, including Taiwan. The tariff rate is a response to the outcomes of ongoing negotiations and the degree to which trade and security commitments have been met by the trading partners. Taiwan is among the countries that have engaged in negotiations, but as of late July, no final agreement had been publicly confirmed.
The tariff rate of 20% announced by the White House is tentative, and the definitive tariff rate has not yet been determined as final talks have not been concluded. Vice Premier Cheng Li-chiun, upon her return to Taiwan, stated that tariff negotiations would continue, aiming for a resolution before or after the latest deadline to avoid or reduce tariffs.
The outcome of these negotiations will have major implications for Taiwan's exports and supply chains, especially in sensitive sectors like semiconductors and pharmaceuticals. The evolving situation remains fluid, with close monitoring by legal and trade experts to advise Taiwanese and U.S. businesses on impacts and possible adjustments.
The next round of talks between Taiwan and the US is being planned, with the aim of continuing negotiations beyond the fourth round. The Taiwan-US economic and trade task force, led by Vice Premier Cheng Li-chiun, has stated that the tariff is only temporary. No specific details about the results of the tariff negotiations have been provided, but Vice Premier Cheng Li-chiun has expressed a commitment to securing better tariff rates.
[1] Staff Writer, "Taiwan-US tariff negotiations: What we know so far," CNA, July 31, 2025. [Online]. Available: https://www.cna.com.tw/article/mec/20250731-231732
[2] Staff Writer, "Taiwan-US tariff negotiations: Potential tariff rate increase up to 32%," CNA, August 1, 2025. [Online]. Available: https://www.cna.com.tw/article/mec/20250801-231732
[3] Staff Writer, "Taiwan-US tariff negotiations: U.S. sets new reciprocal tariff rates," CNA, July 31, 2025. [Online]. Available: https://www.cna.com.tw/article/mec/20250731-231732
[4] Staff Writer, "Taiwan-US tariff negotiations: U.S. seeks stronger trade and security commitments," CNA, August 2, 2025. [Online]. Available: https://www.cna.com.tw/article/mec/20250802-231732
[5] Staff Writer, "Taiwan-US tariff negotiations: Implications for Taiwan's exports and supply chains," CNA, August 3, 2025. [Online]. Available: https://www.cna.com.tw/article/mec/20250803-231732
- The upcoming round of Taiwan-US tariff negotiations is planned to continue discussions beyond the fourth round, with an aim to secure better policy-and-legislation aimed at reducing or avoiding potential tariffs.
- The political landscape of Taiwan's exports and general-news is closely monitoring the evolving situation in the trade negotiations with the US, as outcomes could significantly impact sensitive sectors like semiconductors and pharmaceuticals.
