Taiwan Tariff News and Tracker

US Taiwan Trade Talks Advance Semiconductor Deals and Tariff Negotiations Amid Geopolitical Tensions


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Today on Taiwan Tariff News and Tracker, the spotlight is on the ongoing negotiations between the United States and Taiwan, as both sides work to reshape their economic relationship amid rising global tensions. The Trump administration is deep in talks with Taiwan, aiming to secure a new trade deal that could see major Taiwanese chipmakers like TSMC expand their operations in the U.S. and train more American workers. In exchange, Taiwan is pushing to lower the current 20% tariff imposed on its exports to the United States, a rate that has been in effect since August 2025. According to Fox Business and Reuters, the deal could provide broader tariff relief for Taiwanese goods, while supporting Washington’s efforts to build up its domestic semiconductor industry and science park infrastructure.

Taiwan’s Office of Trade Negotiations confirms that both sides are exchanging documents to finalize details, with Taiwanese officials highlighting their unique experience with science parks and supply chain management. Premier Cho Jung-tai notes that Taiwan’s model is difficult for other countries to replicate, giving Taipei a strong position in these negotiations. However, Taiwan has made it clear that its most advanced semiconductor technologies and research will remain at home.

Meanwhile, the broader tariff landscape remains volatile. President Trump’s reciprocal tariffs, announced earlier this year, have seen rates fluctuate, with Taiwan currently facing a 20% rate on most imports. The Wall Street Law Office and other sources report that goods loaded for final transport to the U.S. before August 7, 2025, and entered by October 5, 2025, are exempt from the new rates, but the situation remains fluid as negotiations continue.

On the geopolitical front, Taiwan’s President Lai Ching-te has announced a proposed $40 billion special defense budget over eight years, citing growing threats from China. The U.S. has reaffirmed its unchanged policy toward Taiwan, with Treasury Secretary Scott Bessent stating that Washington remains committed to supporting Taiwan’s security and economic interests.

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Taiwan Tariff News and TrackerBy Inception Point Ai