Latest news with #Taiwan-US
Time of India
5 days ago
- Business
- Time of India
Trump's ultimatum to Taiwan: 15% tariff only if TSMC buys 49% stake in Intel and invests $400 billion in US
Taiwan-US tariff latest updates : Taiwan faces a high-stakes dilemma in its trade negotiations with the United States, as US president Donald Trump reportedly set tough conditions, if the island nation wants to achieve the same 15% tariff as Japan and South Korea, the semiconductor giant TSMC must acquire a 49% stake in Intel and invests an additional $400 billion in the US, as reported by Mnews. Taiwan-US Trade Tensions Escalate Over Tariffs The proposed 20% tariff has left Taiwan's exporters reeling, but the reciprocal tariff figure was not surprising, as Taiwan's trade deficit with the US last year was higher than that of Japan and South Korea, according to Mnews. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Taiwanese Exporters Reel from 20% Tariff Proposal A senior executive at a major Taiwanese conglomerate, pointed out that, "After all this time, it's still higher than Japan and South Korea, and even higher than the 19% tariffs in Thailand and Indonesia. This is truly dismal. Besides the 5% increase in tariffs, the exchange rate has recently appreciated by 10%, resulting in a 15% gap. Taiwan's industries will be very hard hit," as quoted in the report. Chairman of the Taiwan Chamber of Commerce, Hsu Shu-po, explained that, "Although the 20% increase is temporary, subsequent adjustments will depend on what leverage Taiwan has in negotiations with the US. A 5% difference is hugely damaging," as quoted by Mnews. ALSO READ: Elon Musk loses $80 billion — one more Tesla crash could end his world's richest title Live Events Trade Deficit Pressures Taiwan to Make Concessions The 20% tariff comes as last year Taiwan's trade deficit with the United States reached $73.9 billion, surpassing Japan's $68.5 billion and South Korea's $66 billion, placing added pressure on the island's government to make concessions, according to the report. Donald Trump's Conditions: TSMC Must Buy 49% of Intel and Invest $400 Billion in US Mnews' investigation found that the biggest obstacle in the current negotiations between Taiwan and the United States depends on TSMC, as a tech industry veteran highlighted that, "From the beginning, semiconductors, and especially TSMC, have been Trump's top priority!" as quoted by Mnews. The veteran added, "Whether Taiwan can offer terms that satisfy Trump still depends on TSMC Chairman Wei Zhejia," as quoted in the report. A major listed firm's CEO told Mnews, "Recently, there were reports that Trump was demanding TSMC acquire a 49% stake in Intel and even invest an additional $400 billion in the US. These are things Wei Zhejia simply can't agree to," as quoted in the Mnews report. ALSO READ: Wealth created inside Nvidia reach stunning levels - nearly 80% of employees are millionaires TSMC's Role Critical in Taiwan-US Negotiations However, the two conditions that the US president has set are something that the government cannot decide, as the National Development Fund only holds 6.38% of TSMC's shares, so Wei Zhejia is the key figure who has the power to decide whether TSMC should help Intel and expand its investment in the United States, as reported by Mnews. Analysts Warn of Political Interference in Private Business Chen Huiming, a veteran semiconductor analyst and managing partner of Hong Kong's Juxin Capital, highlighted that, "Of course, this is unacceptable. First, the EU has only invested $600 billion in the United States. Why should the future of a private company be jeopardized by politics? TSMC is a national patriot. We must maintain its competitiveness as much as possible. It is a guarantee of Taiwan's security. Thinking long-term, Trump's term may only last three years," as quoted in the report. While, a senior tech industry analyst explained that, "TSMC's $165 billion investment in the US was already given away. Trump naturally wants more this time. Whether it's agriculture, automobiles, or health foods, even if Taiwan gave up everything, plus purchases of oil, natural gas, aircraft, and arms, it wouldn't compare to the largest trade deficits in semiconductors and ICT," as quoted in the Mnews report. The analyst added that, "Trump's primary concern is the US-China confrontation, and mastering semiconductor and AI technology is paramount. Setting up factories in the US is just the beginning; the US ultimately needs to control key technologies," as quoted in the report. FAQs Why is the US threatening a 20% tariff on Taiwan? Because Taiwan's trade deficit with the US is higher than Japan and South Korea, and the US wants more concessions from Taiwan. What conditions did Trump set for Taiwan to get a 15% tariff? TSMC must acquire a 49% stake in Intel and invest an additional $400 billion in the US.
Economic Times
5 days ago
- Business
- Economic Times
Trump's ultimatum to Taiwan: 15% tariff only if TSMC buys 49% stake in Intel and invests $400 billion in US
Taiwan-US tariff latest updates: Taiwan is facing immense pressure from the United States in trade negotiations, with a proposed 20% tariff looming over Taiwanese exporters. To secure a more favorable 15% tariff, former President Trump demanded that TSMC acquire a significant stake in Intel and make substantial investments in the US. Tired of too many ads? Remove Ads Taiwan-US Trade Tensions Escalate Over Tariffs Taiwanese Exporters Reel from 20% Tariff Proposal Tired of too many ads? Remove Ads Trade Deficit Pressures Taiwan to Make Concessions Donald Trump's Conditions: TSMC Must Buy 49% of Intel and Invest $400 Billion in US TSMC's Role Critical in Taiwan-US Negotiations Analysts Warn of Political Interference in Private Business Tired of too many ads? Remove Ads FAQs Taiwan faces a high-stakes dilemma in its trade negotiations with the United States, as US president Donald Trump reportedly set tough conditions, if the island nation wants to achieve the same 15% tariff as Japan and South Korea, the semiconductor giant TSMC must acquire a 49% stake in Intel and invests an additional $400 billion in the US, as reported by proposed 20% tariff has left Taiwan's exporters reeling, but the reciprocal tariff figure was not surprising, as Taiwan's trade deficit with the US last year was higher than that of Japan and South Korea, according to Mnews.A senior executive at a major Taiwanese conglomerate, pointed out that, "After all this time, it's still higher than Japan and South Korea, and even higher than the 19% tariffs in Thailand and Indonesia. This is truly dismal. Besides the 5% increase in tariffs, the exchange rate has recently appreciated by 10%, resulting in a 15% gap. Taiwan's industries will be very hard hit," as quoted in the of the Taiwan Chamber of Commerce, Hsu Shu-po, explained that, "Although the 20% increase is temporary, subsequent adjustments will depend on what leverage Taiwan has in negotiations with the US. A 5% difference is hugely damaging," as quoted by READ: Elon Musk loses $80 billion — one more Tesla crash could end his world's richest title The 20% tariff comes as last year Taiwan's trade deficit with the United States reached $73.9 billion, surpassing Japan's $68.5 billion and South Korea's $66 billion, placing added pressure on the island's government to make concessions, according to the investigation found that the biggest obstacle in the current negotiations between Taiwan and the United States depends on TSMC, as a tech industry veteran highlighted that, "From the beginning, semiconductors, and especially TSMC, have been Trump's top priority!" as quoted by Mnews. The veteran added, "Whether Taiwan can offer terms that satisfy Trump still depends on TSMC Chairman Wei Zhejia," as quoted in the report.A major listed firm's CEO told Mnews, "Recently, there were reports that Trump was demanding TSMC acquire a 49% stake in Intel and even invest an additional $400 billion in the US. These are things Wei Zhejia simply can't agree to," as quoted in the Mnews READ: Wealth created inside Nvidia reach stunning levels - nearly 80% of employees are millionaires However, the two conditions that the US president has set are something that the government cannot decide, as the National Development Fund only holds 6.38% of TSMC's shares, so Wei Zhejia is the key figure who has the power to decide whether TSMC should help Intel and expand its investment in the United States, as reported by Huiming, a veteran semiconductor analyst and managing partner of Hong Kong's Juxin Capital, highlighted that, "Of course, this is unacceptable. First, the EU has only invested $600 billion in the United States. Why should the future of a private company be jeopardized by politics? TSMC is a national patriot. We must maintain its competitiveness as much as possible. It is a guarantee of Taiwan's security. Thinking long-term, Trump's term may only last three years," as quoted in the a senior tech industry analyst explained that, "TSMC's $165 billion investment in the US was already given away. Trump naturally wants more this time. Whether it's agriculture, automobiles, or health foods, even if Taiwan gave up everything, plus purchases of oil, natural gas, aircraft, and arms, it wouldn't compare to the largest trade deficits in semiconductors and ICT," as quoted in the Mnews analyst added that, "Trump's primary concern is the US-China confrontation, and mastering semiconductor and AI technology is paramount. Setting up factories in the US is just the beginning; the US ultimately needs to control key technologies," as quoted in the Taiwan's trade deficit with the US is higher than Japan and South Korea, and the US wants more concessions from must acquire a 49% stake in Intel and invest an additional $400 billion in the US.
Straits Times
6 days ago
- Business
- Straits Times
Trump's transactional foreign policy fuels ‘US scepticism' in Taiwan
Sign up now: Get ST's newsletters delivered to your inbox There are concerns that Taiwan is being used as a bargaining chip in US trade talks with China, which claims the island as its territory. – Pressure is mounting for Taipei to finalise a trade agreement with Washington and lower tariff rates as soon as possible – and it is not just for economic reasons. The fact that Taiwan has yet to secure a favourable US tariff rate for its exports – despite being one of the first and most eager territories to start talks – has raised questions about President Lai Ching-te's relationship with not only one of the island's largest trading partners, but also its most important security backer. Mr Lai wrote on Facebook on Aug 1 that Taiwan is still working on an agreement with the United States, saying that 'the final tariff rate has not yet been determined', and that the 20 per cent rate announced by US President Donald Trump on July 31 is only temporary. 'The government will strive for more favourable and reasonable tax rates for Taiwan in subsequent negotiations,' he said. Since Mr Trump unveiled his ' L iberation D ay' tariffs on April 2 , when he threatened to slap Taiwan with a punishing 32 per cent tariff rate, Taipei officials have scrambled to appease him and reach a compromise on trade. For one thing , Taipei has pledged to significantly increase purchases of American goods, such as natural gas. On July 31, hours before Mr Trump's self-imposed midnight deadline , he imposed a 20 per cent tariff rate on Taiwan – higher than those directed at Taiwan's key export competitors in the region. Both Japan and South Korea managed to secure tariff rates of 15 per cent after finalising trade agreements with the US days before the Aug 1 deadline. 'Taiwan's lack of a trade deal ahead of Trump's Aug 1 deadline reflected poorly on the Lai administration,' said Professor Julien Chaisse, an international trade and legal expert at the City University of Hong Kong. 'It handed an easy talking point to his critics, who already argue that his administration is too reliant on Washington,' he told The Straits Times. Taipei sees Washington as its biggest security partner against Beijing, which claims the island as its territory and has in recent years ratcheted up military, diplomatic and economic pressure on it. The US is obligated under the Taiwan Relations Act, passed by the US Congress in 1979, to provide the island with the arms it needs to defend itself. Under the leadership of Mr Lai's Democratic Progressive Party, Taiwan has sought to foster warmer ties with Washington amid heightened cross- s trait tensions. 'The public will think: Why, even after four rounds of trade negotiations (between Taipei and Washington), that such a poor outcome was reached for Taiwan,' said Professor Wang Hung-jen from Taiwan's National Cheng Kung University. 'Doubts will arise about the Lai administration's ability to handle Taiwan-US relations in future,' added Prof Wang, who researches international relations. Other recent events have also deepened fears that US-Taiwan relations are straining – more worryingly, at the expense of Taiwan's future as Mr Trump seeks a trade deal with Beijing and a summit with Chinese President Xi Jinping. In other words, there are concerns that Taiwan is being used as a bargaining chip in US trade talks with China. In July, the Financial Times reported that Trump officials had blocked Mr Lai's request to transit through New York during a planned overseas trip to Taipei's Latin American allies, after China raised objections with Washington. The US also reportedly cancelled a meeting in June with Taiwanese Defence Minister Wellington Koo at the last minute, after Mr Xi urged Mr Trump to limit US-Taiwan engagement on a phone call earlier that month. 'These developments could fuel yi mei lun in Taiwan,' said Prof Wang, referring to the 'America scepticism' narrative that questions the reliability of the US as a trusty security partner for Taiwan. While the narrative is mostly spread by pro-Beijing players in Taiwan and disinformation campaigns, Mr Trump's transactional foreign policy has added to a sense of unease that the US may ultimately leave the island hanging in the balance in the event of a Chinese invasion. Such doubts have grown in Taiwan since Mr Trump took office in January. According to an April survey published by US-based research organisation Brookings Institution, Taiwanese believe that the US is less trustworthy now than a year ago, when Mr Joe Biden was president. Some 15.9 per cent of Taiwanese said that the US was 'very untrustworthy', close to double the 8.2 per cent recorded nine months prior. Respondents from the same survey also said they felt less confident that Washington would support them in the event of a military conflict with China, with only 37.5 per cent of Taiwanese saying that it was 'likely' or 'very likely' that the US would step in, down from 44.5 per cent. But as observers have often noted, the only thing predictable about Mr Trump is that he is unpredictable. Mr Ryan Hass, director of the John L. Thornton China Centre at Brookings Institution, described Mr Trump's approach to Taiwan as 'more fluid than constant'. The US leader has similarly 'done a version of this zigzag' in his approach to Ukraine in recent months, Mr Hass wrote in an August commentary co-authored with Dr Richard Bush, a non-resident senior fellow at the same think-tank. When Mr Trump decided that Ukrainian President Volodymyr Zelensky was a hurdle to a Russia-Ukraine ceasefire, he lashed out at Mr Zelensky in the Oval Office , during a televised meeting of his visit in February . But Mr Trump has since returned to supporting the Ukrainian leader, now that the US President has determined that his Russian counterpart Vladimir Putin is impeding progress. 'Trump's shifting stance on Ukraine suggests a real possibility that he could pursue a similarly adaptive approach to managing cross- s trait relations,' the authors wrote in their commentary . 'Trump views his unpredictability as a strategic asset.'
Free Malaysia Today
02-08-2025
- Business
- Free Malaysia Today
Taiwan to seek lower tariff after Trump's ‘temporary' 20% levy
Taiwan's President Lai Ching-te said his government will strive for a reasonable US tariff rate. (AP pic) TAIPEI : Taiwan vowed on Friday to seek a lower tariff after Donald Trump imposed a 'temporary' 20% levy on its shipments as part of his global trade war. The US president had threatened to hit the island with a 32% tax and possible duties on semiconductor chips. After four rounds of face-to-face negotiations and multiple video conferences, Taipei and Washington were still trying to strike a deal, Taiwanese President Lai Ching-te said on Facebook. 'The US has announced a temporary 20% tariff for Taiwan, with the possibility of further reductions should an agreement be reached,' Lai said. 'The government will continue to strive for a reasonable tariff rate and complete the final stages of the tariff negotiations.' Export-dependent Taiwan is a global powerhouse in chip manufacturing, with more than half the world's chips and nearly all of the high-end ones made there. Soaring demand for AI-related technology has fuelled its trade surplus with the US – and put it in the crosshairs of Trump's tariff blitz. Around 60% of Taiwan's exports to the US are information and communications technology, which includes chips. To avoid the punitive tariffs, Taipei has pledged to increase investment in the US, buy more of its energy and increase its own defence spending. While Washington does not recognise Taiwan as a country, it is the democratic island's most important backer and biggest arms supplier. Taiwan 'will continue to actively negotiate with the US to reach an agreement and promote Taiwan-US economic and trade cooperation', the cabinet in Taipei said Friday. Trump in April imposed a 10% 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. Taiwan's vice president Hsiao Bi-khim said recently that the government wanted a trade deal with Washington that 'will benefit both sides'. 'The US is indeed a very important trade partner for Taiwan,' Hsiao said. Washington also 'needs Taiwan in supporting resilient supply chains, in supporting manufacturing and some high-end technologies'. In the weeks leading up to Aug 1, several economies – the EU, Britain, Vietnam, Japan, Indonesia, the Philippines and South Korea – struck pacts with Washington, while China managed to temporarily lower tit-for-tat duties.
New Straits Times
01-08-2025
- Business
- New Straits Times
Taiwan vows to push for lower US tariff after 20pct hit
TAIPEI: Taiwan vowed on Friday to seek a lower tariff after Donald Trump imposed a "temporary" 20 per cent levy on its shipments as part of his global trade war. The US president had threatened to hit the island with a 32 per cent tax and possible duties on semiconductor chips. After four rounds of face-to-face negotiations and multiple video conferences, Taipei and Washington were still trying to strike a deal, Taiwan President Lai Ching-te said on Facebook. "The US has announced a temporary 20 per cent tariff for Taiwan, with the possibility of further reductions should an agreement be reached," Lai said. "The government will continue to strive for a reasonable tariff rate and complete the final stages of the tariff negotiations." Export-dependent Taiwan is a global powerhouse in chip manufacturing, with more than half the world's chips and nearly all of the high-end ones made there. Soaring demand for AI-related technology has fuelled its trade surplus with the United States – and put it in the crosshairs of Trump's tariff blitz. Around 60 per cent of Taiwan's exports to the United States are information and communications technology, which includes chips. To avoid the punitive tariffs, Taipei has pledged to increase investment in the United States, buy more of its energy and increase its own defence spending. While Washington does not recognise Taiwan as a country, it is the democratic island's most important backer and biggest arms supplier. Taiwan "will continue to actively negotiate with the United States to reach an agreement and promote Taiwan-US economic and trade cooperation", the cabinet in Taipei said Friday. 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 August 1. Taiwan Vice President Hsiao Bi-khim said recently that the government wanted a trade deal with Washington that "will benefit both sides." "The United States is indeed a very important trade partner for Taiwan," Hsiao said. Washington also "needs Taiwan in supporting resilient supply chains, in supporting manufacturing and some high-end technologies." In the weeks leading up to August 1, several economies – the European Union, Britain, Vietnam, Japan, Indonesia, the Philippines and South Korea – struck pacts with Washington, while China managed to temporarily lower tit-for-tat duties.--AFP
