Taiwan, US Seek Fair Tariff Terms in Ongoing Auto, Pharma Talks

Taiwan and the United States are engaged in ongoing tariff negotiations focused on securing better rates, ensuring fair processes under U.S. trade law, and preventing overlapping tariffs. Vice Premier Cheng Li-chiun and Premier Cho Jung-tai have led multiple discussions, both virtual and in-person, addressing tariffs on U.S. car imports, semiconductors, agricultural products, and industrial goods. The U.S. has demanded greater market access for American-made vehicles in Taiwan, with talks also covering compliance with safety and emissions standards. Taiwan negotiated a reduction in the U.S. reciprocal tariff from a base rate plus 32% to a provisional 20%, which has halved the projected negative economic impacts on exports, production, GDP, and employment. Certain products such as steel, auto parts, pharmaceuticals, and semiconductors are currently exempted due to national security considerations under Section 232 of the U.S. Trade Expansion Act. The Taiwanese government plans to provide relief through a special resilience budget to support affected industries and workers while awaiting a final agreement to be presented to the legislature and public.