2 days ago
Taiwan says US trade deal push still on despite court ruling
Deputy Foreign Minister Chen Ming-chi said Taipei will push for Washington to drop Taiwan's tariffs 'as low as possible.' PHOTO: REUTERS
Taiwan says US trade deal push still on despite court ruling
TAIPEI – Taiwan is continuing efforts to secure a trade deal with the US, a top official in Taipei said, even after a court blocked many of the tariffs that President Donald Trump has threatened to impose on other countries.
While the ruling may prompt some countries to adopt a 'wait and see' approach, Taiwan remains committed to negotiations, Deputy Foreign Minister Chen Ming-chi said in an interview on May 29.
'We are glad to see that there are some debates among different branches of government in the US,' he said. 'That will make everything more reasonable and more acceptable.'
He added that 'we are serious about our negotiations and we are serious to have a fair trade with the US.'
Mr Trump's use of tariff threats to pressure other countries into cutting new trade deals was thrown into turmoil after a court said the US president exceeded his authority, significantly weakening his bargaining power at least temporarily.
An appeals court offered Mr Trump a temporary reprieve from the ruling, but the saga could delay negotiations with other trading partners that began after Mr Trump announced a 90-day pause on the steep 'reciprocal' tariffs that were rolled out in early April.
If left intact, the US would impose a 32 per cent levy on imports from Taiwan.
Taiwan President Lai Ching-te has sought to downplay any tensions while highlighting the strength of relations with the US.
He expressed willingness to increase imports from the US, including energy, agricultural and military goods, to lower the trade imbalance.
Premier Cho Jung-tai has said preparations for a second round of talks were underway.
Mr Chen said he remains confident that his government will reach a deal before the US pause is set to lift, and will push for Washington to drop Taiwan's tariffs 'as low as possible.'
He added that as a strong American ally, Taiwan should push for lower rates than those on others.
'We want to be the special someone,' Mr Chen said, adding that if other countries finalise the tariff at 10 per cent, 'being special means lower than 10 per cent.'
Open the market
Mr Chen indicated Taiwan had some room to lower tariffs on some US goods such as automobiles, which are subject to a 17.5 per cent levy.
'I hope, as a consumer and a fan of the American car, we can have a lower tariff on US cars,' he said.
He said the auto sector isn't a strategic one for Taiwan and shouldn't hinder talks with Washington.
'I'm very optimistic about the negotiation between the US and Taiwan, especially when it comes to autos.'
Mr Chen also said Taiwan would open its market to more US agricultural products. In addition to beef and pork, the government is reviewing a potential list of other goods, he said.
Before the Trump administration announced the levies, Taiwan Semiconductor Manufacturing Co, the archipelago's biggest firm and a key supplier to Apple Inc and Nvidia Corp, said that it would invest an additional US$100 billion (S$128.53 billion) in the US.
However, Mr Chen said potential US tariffs on chip imports could complicate Taiwanese investments.
Such levies would affect companies' cash flows, he said, hurting their ability to invest.
Mr Chen said plans for a sovereign wealth fund announced by Mr Lai last week provided an opportunity for the self-ruled democracy to invest globally, 'especially with our close friend and our close trading partners, the US included.' BLOOMBERG
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