First Round of Taiwan-US Tariff Negotiations Begins: Taiwan as the Initial Focus, Focusing on Economic and Trade Barriers and Export Controls

Taiwan • Business • 04/12 04:38
First Round of Taiwan-US Tariff Negotiations Begins: Taiwan as the Initial Focus, Focusing on Economic and Trade Barriers and Export Controls

On April 11, 2025, Taiwan and the United States commenced the first round of tariff negotiations via video conference, discussing issues such as reciprocal tariffs, non-tariff trade barriers, and export controls. The Taiwanese team was led by Executive Yuan Deputy Premier Cheng Li-chun (Lily Cheng) and Chief Negotiator Jenny Yang. Taiwan, along with Israel, was included in the first wave of negotiations by the U.S., indicating the U.S.'s acknowledgment of Taiwan's strategic importance. Both parties will continue negotiations during the 90-day tariff suspension period, with the aim of establishing a strong economic and trade relationship between Taiwan and the U.S.

Key Updates

04/12 06:39

Escalation in the US-China Trade War: US Imposes 145% Tariff on Chinese Goods, China Retaliates with a 125% Tariff, Global Markets in Turmoil

On April 12, 2025, the US-China trade war intensified, with the US imposing a total tariff rate of 145% on Chinese products, and China retaliating with a 125% rate. This led to disruptions in global supply chains and financial markets. Taiwanese manufacturers experienced a surge in orders, air freight space was fully booked, and the Taiwan stock market experienced significant volatility. The US temporarily suspended reciprocal tariffs for 90 days on 75 countries, with Taiwan included in the first round of negotiations, requiring only a 10% tariff rate, prompting Taiwanese electronics and semiconductor companies to speed up shipments.

04/12 06:39

Trump's announcement of high tariffs has led to an escalation in the US-China trade war, causing volatility in global stock markets, resulting in Taiwan's stock market experiencing its largest drop in history.

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In 2025, the US-China tariff war heats up: India could be the winner, Taiwanese stocks soar, and Taiwanese businesses in Vietnam are under pressure.

In April 2025, the US-China trade war intensified as President Trump imposed a 145% tariff on Chinese goods, and China retaliated by raising its tariffs to 125%. This move caused global market turmoil and led to a conservative outlook for the US economy. Expectations for a Federal Reserve rate cut increased, which benefited long-term bonds. China initiated a plan to shift exports to domestic sales, and Taiwan's stock market rebounded thanks to the intervention of the National Stabilization Fund and favorable trade negotiations. Taiwanese businesses in Vietnam faced pressure from a 46% tariff and actively engaged in negotiations to adjust their strategies. India, with its low export dependency and flexible policies, was considered a potential beneficiary.

04/12 05:08

President Trump of the United States delays reciprocal tariffs by 90 days: begins trade talks with Taiwan and 15 other countries, with the goal of reaching 90 agreements.

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04/12 05:08

Experts: U.S. tariff policies may result in iPhones being made in the U.S., with prices possibly soaring to NT$80,000.

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04/12 04:38

First Round of Taiwan-US Tariff Negotiations Begins: Taiwan as the Initial Focus, Focusing on Economic and Trade Barriers and Export Controls

On April 11, 2025, Taiwan and the United States commenced the first round of tariff negotiations via video conference, discussing issues such as reciprocal tariffs, non-tariff trade barriers, and export controls. The Taiwanese team was led by Executive Yuan Deputy Premier Cheng Li-chun (Lily Cheng) and Chief Negotiator Jenny Yang. Taiwan, along with Israel, was included in the first wave of negotiations by the U.S., indicating the U.S.'s acknowledgment of Taiwan's strategic importance. Both parties will continue negotiations during the 90-day tariff suspension period, with the aim of establishing a strong economic and trade relationship between Taiwan and the U.S.

04/12 03:36

The first round of the Taiwan-US tariff and trade barrier video conference is underway, with a focus on reciprocal tariffs, non-tariff barriers, and export controls.

On April 11, 2025, the trade negotiation teams from Taiwan and the United States held their first virtual meeting to discuss issues such as mutual tariffs, non-tariff barriers, and export controls. Taiwanese President Lai Ching-te highlighted Taiwan's inclusion in the U.S.'s initial negotiation list and proposed starting with "zero tariffs" as a concept. Both parties agreed to begin further consultations in the near future to enhance economic and trade cooperation between Taiwan and the U.S.

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Trump's tariff policy causes an 11.2% increase in March car sales, experts warn of the risks of panic buying, Wall Street executives express opposition.

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04/12 02:40

US-China Tariff War Escalates: Trump Slaps 145% Tariffs on Chinese Goods, Taiwanese Manufacturers Face Rush Orders and Pressure to Lower Prices

The US-China trade war is escalating. On April 9, President Trump announced a 145% tariff on Chinese goods and a 90-day suspension of reciprocal tariffs for 75 other countries, imposing only a 10% base tax rate. This move has caused shocks in the global supply chain, with Taiwanese manufacturers receiving a large number of urgent orders but facing pressure to reduce prices. Air freight space is fully booked, and demand for sea freight has surged, keeping logistics providers busy handling the rush. This article analyzes the impact of tariff policies on Taiwanese industries and the global logistics market.

First Taiwan-US Video Conference Takes Place: Focus on Reciprocal Tariffs and Non-Tariff Barriers

According to the Executive Yuan's Office of Trade Negotiations, it was confirmed on the 12th that Taiwan and the US held their first video conference on tariff negotiations on April 11. The meeting covered three main topics: 1) Taiwan-US reciprocal tariffs issues; 2) non-tariff trade barriers; and 3) other economic and trade issues, including export controls. Both parties expressed their expectation to commence follow-up negotiations soon to further deepen bilateral economic and trade cooperation.

The background of this negotiation is the announcement by President Trump in early April to implement a reciprocal tariffs policy on 75 countries worldwide. Taiwan was initially included in the list for a high tariff of 32%, but the US later announced a 90-day suspension, during which only a 10% tariff would be imposed. The Taiwanese government quickly activated a response mechanism, actively seeking negotiations with the US, and was eventually included in the first round of negotiations.

Strong Negotiation Team, Intensive Negotiations by Jenny Yang

The negotiations were led by Executive Yuan Vice Premier Cheng Li-chun, with Jenny Yang, Executive Yuan Minister without Portfolio, as the chief negotiator. Deputy chief negotiator was Deputy Minister of Foreign Affairs Chen Ming-chi, with participation from Deputy Minister of Economic Affairs Chiang Wen-juo and Chairperson of the Taiwan-US Affairs Committee Yen Hui-hsin, among others. Jenny Yang has extensive experience in international economic and trade negotiations, having participated in Taiwan's WTO accession negotiations.

Jenny Yang made several trips to the US before the negotiations for intensive discussions with the United States Trade Representative (USTR), communicating on the format, timing, and topics of the negotiations, paving the way for this video conference. The Executive Yuan stated that future negotiation progress will determine the timely announcement of follow-up consultation arrangements.

Key Points of Opinion Exchange: Zero-for-Zero Tariffs Proposal and Expanded Procurement

In this meeting, Taiwan proposed "zero-for-zero tariffs" as the starting point for negotiations, suggesting a gradual reduction of tariffs on mutually beneficial items, modeled after the USMCA. This move aims to address US concerns about the trade deficit with Taiwan and lay the foundation for a future Taiwan-US Free Trade Agreement (FTA).

Additionally, Taiwan expressed its willingness to expand procurement and investment in the US. Minister of Economic Affairs Kuo Tzu-hui pointed out that Taiwan is expected to import over $200 billion worth of goods from the US in the next decade, focusing on liquefied natural gas (LNG), high-tech equipment, and military equipment. CPC Corporation has signed a letter of intent for natural gas procurement with Alaska, and the proportion of LNG imports is expected to increase from the current 10% to 30%.

Non-Tariff Barriers and Export Controls Also on the Agenda

Besides tariff issues, the two sides also discussed non-tariff trade barriers. US concerns include restrictions on US pork and beef imports, automotive technical standards, and market access barriers. Taiwan stated that it will review each item and seek solutions to facilitate smooth negotiations.

Export controls were also a key discussion point in this meeting. The US is concerned about Taiwan's control mechanisms on high-tech product exports, especially semiconductors and cybersecurity-related products. Taiwan emphasized its continued cooperation with the US to ensure supply chain security and compliance with technology transfers.

Taiwan Listed as First Wave Negotiation Target, Regional Security Role Emphasized

Taiwan, along with Israel, was listed as a first-wave negotiation target by the US, highlighting its importance in the US's global economic and geopolitical strategy. US Trade Representative Jamieson Greer stated in an interview with Fox News that Taiwan is an important economic and security partner for the US, and cooperation between the two sides helps strengthen stability in the Indo-Pacific region.

Associate Professor Chen Wen-chia of the National Chengchi University College of International Affairs pointed out that Taiwan is at the core of the first island chain and is a key point in countering China's influence. Taiwan and the US have a high degree of complementarity in semiconductors, high-tech, and cybersecurity, and cooperation helps establish a "de-Sinicized" high-tech supply chain.

Government Fully Responds, Aiming for Results Within 90 Days

Facing a 90-day negotiation buffer period, the Taiwanese government has launched a "divide and conquer" strategy. President Lai Ching-te embarked on an industry listening tour to communicate policy directions with various sectors, while Premier Cho Jung-tai has gone to the Legislative Yuan to deliver a special report explaining the NT$88 billion industry support plan. Foreign Minister Lin Chia-lung stated that the government has established communication channels with the US, hoping to reach a mutually acceptable agreement within 90 days.

The current negotiation directions cover three major areas: 1) military procurement cooperation, striving for advanced weaponry; 2) procurement of energy and high-tech products; and 3) agricultural and industrial cooperation, including import quotas and Taiwanese companies investing in the US to set up factories. The government emphasizes that national interests and industrial development will be prioritized, and the negotiation process will be advanced prudently.

References

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