Ongoing U.S.-Taiwan Tariff Negotiations Amidst Rising Tensions

On July 8, Taiwan's Minister of Economic Affairs, Kuo Jyh-huei, addressed the continuing tariff negotiations between Taiwan and the United States, affirming that discussions are still active. According to reports, the minister conveyed a sense of cautious optimism about the trade talks when questioned by the press at the Legislative Yuan.

Previously, the U.S. had proposed imposing provisional tariffs of 32 percent on imports from Taiwan which might come into effect if negotiations fail by the specified deadline. In response to rising trade tensions, President Donald Trump had initially delayed the tariff imposition for 90 days, opting for a lower baseline duty of 10 percent instead. This decision followed a series of significant import duties announced earlier against various trading partners. As the deadline approaches on July 9, deals have only been struck with countries like the United Kingdom and Vietnam.

Amid rising tariffs from the U.S. on multiple nations, escalating to 25 percent and set to commence from August 1, 2025, Treasury Secretary Scott Bessent hinted at an aggressive approach from the U.S. to expedite negotiations. He mentioned that President Trump would reach out to trading partners urging prompt actions to avoid reverting to higher tariff levels established earlier in the year.

In Taiwan, the government's strategy of maintaining closed negotiations has faced backlash from groups like the Taiwan Labour Action Coalition, which criticized the administration for a lack of engagement with labor representatives during this critical negotiation period. Lawmaker Szu-yao from the ruling Democratic Progressive Party also cautioned against undue speculation as the deadline approaches, emphasizing the government's commitment to safeguarding the rights of Taiwanese citizens throughout this process.