Taiwan: Tariff negotiations at a "key stage"

Taiwan's vice premier said tariff negotiations with the United States have entered a "key phase," just over two weeks before Washington's deadline for an agreement.

"We have now entered a key phase, as if we were in the last inning of a [baseball] game; we ask for a little more time, as we are committed to concluding the negotiations before the deadline," said Cheng Li-chiun.

"If both parties reach a consensus, we can set a tariff," the deputy prime minister added in a statement released Saturday by the Taiwanese government.

On Tuesday, Cheng and Taipei's top trade envoy, Yang Jen-ni, were in Washington for a third round of meetings "on economic and trade issues, including reciprocal tariffs."

Taiwan's leaders held "general discussions" with U.S. Trade Representative Jamieson Greer and U.S. Commerce Secretary Howard Lutnick.

Taiwan's trade surplus with the US amounted to more than $73 billion (€62.4 billion) in 2024.

"The Taiwanese side has made every effort to explain that this imbalance is due to the high complementarity between the industries of the two countries," Cheng Li-chiun stressed.

"Taiwan will continue to seek ways to promote more balanced trade by resolving past trade disputes, optimizing the economic and trading system, and thus laying the foundation for a deeper partnership in the future," the Deputy Prime Minister added.

US President Donald Trump announced on Monday that he will postpone the end of the tariff truce granted to trading partners from July 9 to August 1.

However, Trump sent letters to some of his partners with the new tariffs unless they eliminate their taxes and trade barriers, highlighting Japan and South Korea, to which he would apply tariffs of 25%.

Cheng Li-chiun confirmed that Taiwan had not received any notification from the United States, but stressed that even if it did, “it would not represent the final outcome of the negotiations.”

"Negotiations between Taiwan and the US are still ongoing (...). Both sides have expressed their intention to reach an agreement before August 1, when the final outcome will be determined," Cheng said.

On Tuesday, Taiwan's leader, William Lai Ching-te, expressed confidence that tariff negotiations with the United States would achieve a "trade balance" and serve to "strengthen bilateral cooperation" in technology and national security.

Taipei has already admitted that it would have difficulty growing above 3% this year if negotiations fail and the US imposes the planned 32% tariffs, mainly on semiconductors – the island's main export asset.