54President Trump of the United States Launches 2025 Trade Negotiations: with Taiwan, Japan, and South Korea Involved, US-China Tariff Talks Show Progress
In May 2025, the Trump administration initiated a new round of trade negotiations, planning to conduct bilateral talks with about 20 countries, including Taiwan, Japan, and South Korea, with the goal of achieving preliminary results by the end of the year. The negotiations involve both major economies and smaller trade partners, aiming to create a model for future trade agreements. Trump is also considering lowering the punitive tariffs, which are as high as 145%, on China, suggesting there may be room for negotiation in the US-China trade war. Senior US and Chinese officials held talks in Geneva on May 10, marking the first significant trade talks since Trump assumed office.
60The United States and the United Kingdom have reached their first trade agreement: reduction in car tariffs and exemptions on steel and aluminum products, sparking concerns about Taiwan's tariff treatment.
On May 8, 2025, the United States and the United Kingdom announced the signing of the "Economic Prosperity Agreement," which marks the first bilateral trade agreement since President Trump initiated the "Reciprocal Tariff Policy" in April. The agreement includes a reduction in automobile tariffs, the establishment of import quotas, tariff exemptions for steel and aluminum products, and creates $5 billion in business opportunities for U.S. exporters. This move has raised concerns regarding the future tariff treatment of other trade partners, particularly Taiwan, since the U.S. imposes a 32% tariff on most Taiwanese products, with only a few high-tech products being exempt.
45Premier Cho Jung-tai of the Executive Yuan firmly supports energy transition and calls on the Legislative Yuan to allocate NT$100 billion to Taipower to stabilize electricity prices.
On May 9, 2025, Premier Cho Jung-tai reiterated in an exclusive interview that the government's second energy transition policy is correct. He emphasized the allocation of NT$100 billion to Taiwan Power Company to offset losses and stabilize electricity rates, thereby preventing industries from facing pressure due to electricity rates and tariffs. Taiwan Power Company promised not to raise electricity rates this year if the allocation is granted. With the decommissioning of the No. 2 unit at the Third Nuclear Power Plant, Taiwan has entered a nuclear-free era, drawing attention to energy policies. Cho Jung-tai urged the Legislative Yuan to support the allocation proposal, emphasizing the importance of advancing green energy development alongside maintaining power stability.