Tariff Discussion: Lai called for arranging a US tariff conference
Taiwan Faces Higher Tariffs Than Japan and South Korea in U.S. Trade Dispute
Taipei Mayor Chiang Wan-an has revealed that Taiwan's tariffs are higher than previously stated by the Executive Yuan, as the nation finds itself in a tense and unresolved trade negotiation with the United States.
As of early August 2025, the U.S. has imposed a 20% tariff on Taiwanese exports, down from a threatened 32%, but Taiwan seeks to negotiate a lower rate closer to the 15% tariffs that Japan and South Korea have secured. The U.S. reportedly demands Taiwan make large investment commitments—between US$300 billion and US$400 billion—to qualify for the lower 15% tariff tier, comparable to the US$550 billion and US$350 billion pledges from Japan and South Korea, respectively.
The opposition is using Japan and South Korea as benchmarks, but Taiwan negotiated a lower tariff rate compared to the initial tariffs imposed on those nations. However, the key details about Taiwan's investment in the U.S. and market opening requirements remain unclear.
Taichung Mayor Lu Shiow-yen and Taoyuan Mayor Simon Chang have both expressed concerns about the impact of the tariffs on Taiwanese industries. Lu stated that the tariffs will have a significant impact, while Chang noted that the 20% tariff is a significant drop from the initial U.S. announcement, but remains challenging compared to competing nations' tariffs.
New Taipei City Mayor Hou You-yi has called for an explanation from President Lai about the use of the term "tentative" in reference to the 20% tariff. Meanwhile, Democratic Progressive Party (DPP) caucus chief executive Rosalia Wu stated that negotiations between Taiwan and the U.S. are still ongoing.
Taiwan People's Party Chairman Huang Kuo-chang described the government negotiations with the U.S. as a "black box" affair, urging Lai to explain the details of the deals made. Huang also urged all sectors to support Taiwan regardless of political affiliation.
The TPP caucus is inviting representatives from all parties to discuss the tariff matter at 9am on Monday, with the DPP being urged to join calls for the Executive Yuan to provide an explanation.
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- The trade dispute between Taiwan and the United States has significant implications for Taiwan's business and finance industries, as the country faces higher tariffs compared to Japan and South Korea.
- The negotiations between Taiwan and the United States in the realm of politics and general news are critical, with Taiwan aiming to secure a lower tariff rate similar to that secured by Japan and South Korea, requiring extensive investment commitments.
