Taiwan Suggests US Tariff Deal Could Be Reached Soon

Post by : Saif Nasser

Taiwan has indicated that a tariff agreement with the United States could be close, as its trade team departed for Washington for the sixth round of direct talks. The discussions aim to reduce tariffs on Taiwanese exports, improve trade balance, and enhance cooperation in semiconductors and the global AI supply chain.

The negotiations focus on lowering some export tariffs from 20% to 15%, with both sides expected to announce areas of agreement after the talks. Once consensus is reached, Taiwan will schedule a formal signing with the U.S. Trade Representative and submit the deal for review by its parliament.

Taiwan’s delegation, led by Vice Premier Cheng Li-chiun and trade envoy Yang Jen-ni, will meet U.S. officials to finalize details. While officials are hopeful, Taiwan’s spokesperson Benjamin Hsu cautioned that results depend on final agreement by both parties, and an announcement could take time. Sources suggest a deal might be public by the end of January.

Taiwan is a leading global semiconductor producer. Its offer reportedly includes helping the U.S. replicate Taiwan’s technology clusters around science parks. As part of the potential agreement, TSMC may build more chip facilities in Arizona, supplementing its $165 billion already pledged investment in the United States. TSMC has not confirmed additional commitments.

Currently, Taiwan’s chip exports are not affected by U.S. tariffs. However, the White House recently imposed a 25% tariff on specific AI chips, including Nvidia’s H200 processors, citing national security concerns. Taiwan has emphasized that previous agreements already give preferential tariff treatment for semiconductors and related products, which it hopes will be expanded under the new deal.

If successful, the tariff agreement could benefit both countries. Taiwan would gain reduced export costs, supporting growth in its technology sector. The United States would secure additional semiconductor production and expertise on American soil. Experts also see the deal as strengthening U.S.-Taiwan ties and stabilizing the global technology supply chain.

The talks highlight Taiwan’s key role in the semiconductor and AI industries. A formal agreement could boost trade, encourage investment, and reinforce Taiwan’s position in global technology markets.