Taiwan-US Relations

Taiwan Officials Using 'Multiple Channels' for Tariff Talks With U.S.

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By Patrick Chen/Joyce Tseng

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Taiwan is prepared to negotiate with the U.S. on the issue of tariffs with at least US$200 billion, economy minister J.W. Kuo says. As U.S. President Donald Trump pauses higher tariff rates on roughly 60 countries including Taiwan, Taipei officials say this allows some "breathing room" for negotiations. Taiwan has been bracing for a 32% tariff rate on most of its goods going to the U.S., now lowered to 10% for three months.

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TAIPEI — In a sharp reversal after days of global market turmoil, U.S. President Donald Trump announced a 90-day pause on his sweeping reciprocal tariffs targeting dozens of countries. The move offers temporary relief to U.S. trading partners including Taiwan—but not China, which now faces a sharply higher 125% tariff. 

“We wrote it up from our hearts, right?” Trump said during remarks in Washington. “We don't want to hurt countries that don't need to be hurt and they all want to negotiate. The only problem is you can only do so many at one time.” 

The tariffs, introduced just a week ago, had roiled financial markets and prompted a wave of diplomatic outreach. The White House said approximately 70 countries had contacted U.S. officials seeking to negotiate exemptions. 

Among them is Taiwan, which had been bracing for a 32% tariff on most of its exports to the United States. Taiwan President Lai Ching-te has already ruled out retaliatory measures and offered to begin negotiations based on “zero tariffs.” On Wednesday, the country’s foreign minister, Lin Chia-lung, confirmed Taiwan was among the beneficiaries of the 90-day reprieve. 

The news sent Taiwan’s benchmark TAIEX stock index surging. It rebounded more than 1,600 points on the day, closing up 9.25% after a week of sharp losses. 

With the deadline extended, Taipei is accelerating its efforts to prepare for negotiations. Lin said the Cabinet has drawn up several proposals and is willing to address one of Trump’s main complaints—Taiwan’s large trade surplus with the United States. 

“We have prepared various plans [for negotiations],” Lin said. “The Cabinet, on the basis of national security and our interests, has completed a large-scale purchase plan of [U.S.] agricultural and industrial goods as well as oil and natural gas.” 

Deputy chief negotiator Yen Huai-shing said Taiwan has already submitted a formal request to open talks. “A few days ago, we applied for talks,” she said. 

Economy minister J.W. Kuo added that Taiwan is preparing to enter negotiations with substantial economic leverage. “There’s about US$200 billion we can negotiate with,” Kuo said. “We are still collecting private investments. So, if we can talk [with the U.S.] with one package, this may be a stronger incentive.” 

Despite the diplomatic push, Taiwanese officials say there is still uncertainty over when—and in what order—Trump’s administration will engage with foreign governments. Nevertheless, they stress Taiwan’s willingness to negotiate and reaffirm the country’s commitment to its largest international backer.