Taiwan is still conducting last-minute negotiations with the United States about reciprocal tariff rates as the Trump administration’s new trade policy comes into effect. Scholars said Thursday that increased investment commitments to the U.S. will be key for Taiwan to secure preferential rates similar to those given to Japan and South Korea.
President Donald Trump announced reciprocal tariff rates for most major trading partners, with India facing a 25% tariff and South Korea receiving a 15% rate as of Wednesday. Taiwan is the only remaining country among the top 10 U.S. trade deficit nations without announced rates.
On Wednesday, Chung-Hua Institution for Economic Research Vice President Wang, Jiann-chyuan (王健全), analyzed that Japan secured its 15% rate by promising $550 billion in U.S. investments and opening its domestic markets, including those for automobiles, rice, and agricultural products. South Korea agreed to $350 billion in Trump-selected investments and $100 billion in U.S. energy purchases to obtain the same rate.
Tamkang University economics professor Tsai Ming-fang (蔡明芳) said Taiwan’s economic size allows it to offer investment and procurement terms comparable to Japan and South Korea. However, he warned that Trump’s unpredictability remains a key factor, and the U.S. might resist equal treatment because Taiwan’s higher AI-related exports compared to its regional neighbors complicate matters.
31/07/2025 16:09
Editor： Filip Leskovsky