Vice Premier Cheng Li-chiun said Aug. 11 that Taiwan will continue to negotiate with the U.S. to seek a more reasonable levies and tariff stacking relief.
The vice premier made the remarks during a press conference in Taipei City. She added that Washington has lowered the reciprocal tariff imposed on Taiwan from 32 percent to a temporary 20 percent effective Aug. 7 after several rounds of negotiations, citing additional video meetings held Aug. 7 and 8.
According to Cheng, challenges faced in the negotiation process include U.S. expectations for a fully open Taiwan market and lower non-tariff trade barriers in areas such as U.S. vehicle access and import licensing systems. However, the vice premier stressed that the team will continue to protect Taiwan’s interests and industries as well as safeguard food security and its people’s health.
Cheng went on to elaborate on calculations for the current tariff, that is, existing most-favored nation duties plus a 20 percent reciprocal rate. Current industrial exports to the U.S. reached US$112.9 billion and agricultural exports topped US$890 million, with average pre-existing tariffs of 3.1 percent and 5 percent, respectively. She added that a dedicated online response site will be set up for public inquiries.
In addition, the team will also try to seek the best position on semiconductor tariffs under Section 232 of the Trade Expansion Act of 1962. Taiwan has the sixth largest trading surplus with the U.S. with about 90 percent of that coming from semiconductors and other electronic components, Cheng said, adding that the two sides have complementary advantages in the high-tech sector and the team will work further to deepen long-term Taiwan-U.S. cooperation in supply chains.
The negotiation team has notified the U.S. that the full text of the final agreement will be submitted to the Legislative Yuan for review, Cheng said. She added that it will explain the detail to both the Legislature and the public in an open and transparent manner.
Secretary-General Kung Ming-hsin further elucidated on specific supporting measures to assist affected industries spanning hand tool, heavy electrical, machine tool, plastics and water hardware sectors. He cited the machine tool industry as a sector where government will help enterprises upgrade equipment and introduce artificial intelligence technology to expand markets in Europe, India and Southeast Asia. (YCH-E)
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