Taiwan says reached 'a certain consensus' with US on tariffs
Taiwan faces a 32 per cent tax and possible duties on semiconductor chips, which are a key driver of the democratic island's economy.
Taipei - Taiwan has reached 'a certain consensus' with the United States on tariffs, a Taipei government official said July 31, but did not provide details on the agreed levy.
US President Donald Trump has given
Washington's trade partners until Aug 1 to reach an agreement with the White House or be hit with his threatened levies.
Taiwan faces a 32 per cent tax and possible duties on semiconductor chips, which are a key driver of the democratic island's economy.
'We reached a certain consensus on issues including tariffs, non-tariff trade barriers, trade facilitation, as well as supply chain resilience and economic security,' Cabinet spokeswoman Michelle Lee said.
She added that Taipei was 'still waiting for the US government's decision-making process to conclude'.
'Both sides have also conducted negotiations on a joint statement,' she said.
'We will report to the public once we have an update.'
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Several economies – the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines – have struck initial tariff deals with Washington, while China managed to temporarily lower tit-for-tat duties.
'Our negotiators are literally working around the clock to strive to reach an agreement on reciprocal tariffs,' Taiwanese Vice-President Hsiao Bi-khim told journalists recently.
She said Taipei wanted a trade deal with Washington that 'will benefit both sides'.
'The United States is indeed a very important trade partner for Taiwan,' she said.
Washington also 'needs Taiwan in supporting resilient supply chains, in supporting manufacturing and some high-end technologies'.
Mr Trump in April imposed a 10 per cent tariff on almost all US trading partners, while announcing plans to eventually hike this level for dozens of countries.
But days before the steeper duties were due to take effect on July 9, he pushed the deadline back to Aug 1.
Ms Lee said Taiwanese officials were 'continuing negotiations with the US side in Washington'.
Taiwan is a global powerhouse in chip manufacturing and Trump has previously accused the island of stealing the US semiconductor industry.
Soaring demand for AI-related chips in recent years has fuelled Taiwan's trade surplus with the United States – and put it in the cross-hairs of Trump's global tariff war.
Around 60 per cent of Taiwan's exports to the United States are information and communications technology, which includes chips.
To avoid Mr Trump's punitive tariffs, Taipei has pledged to increase investment in the United States, buy more of its energy and increase its own defence spending. AFP
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