U.S.-Taiwan tariff negotiations have entered their final stage, with President Ching-Te Lai recently stating they are “just one step away from the finish line.” However, the delay in finalizing an agreement has drawn considerable attention. Hsien-Ming Lien, President of the Chung-Hua Institution for Economic Research (CIER), suggests the primary obstacle may be the United States’ unresolved approach to taxing the semiconductor industry. The complexity of semiconductor-related negotiations has exceeded expectations, with virtually no country having reached a definitive agreement on this front.
U.S. Evaluating Tax Framework as Multiple Countries Await Final Terms
President Trump recently indicated that the United States is close to reaching trade agreements with India and Switzerland, with plans to reduce import tariffs. In contrast, U.S.-Taiwan negotiations, which commenced in April, have continued for over 6 months with details still under coordination. President Ching-Te Lai has stated that Taiwan’s objectives include reducing the current 20% tariff, avoiding double taxation, and securing most-favored-nation status under Section 232 provisions.
President Hsien-Ming Lien notes that even among countries claiming to have completed negotiations, formal agreements have not been signed. South Korea’s progress has been delayed due to unresolved issues with its nuclear submarines. While Japan and Europe have announced most-favored-nation treatment, the specific terms remain unclear, suggesting the United States may still be evaluating its semiconductor taxation framework.
Taiwan’s relevant government agencies have completed all necessary procedures, with further progress now dependent on U.S. decision-making and President Trump’s schedule. Multiple countries are currently awaiting U.S. action, and whether results will be announced in the near term remains uncertain. Based on experience, President Hsien-Ming Lien notes that the United States is particularly interested in the semiconductor industry, making it essential to closely monitor the direction of future negotiations.
Author: CIER Editorial Team
Date: November 13, 2025