The United States has reportedly asked Taiwan to invest around $400 billion as part of ongoing trade negotiations—an amount higher than what was requested from South Korea.
On the 24th, Taiwanese media outlets including China Times and Liberty Times cited the Financial Times (FT) as reporting on the recent status of U.S.–Taiwan tariff negotiations.
According to sources, the U.S. requested a massive investment from Taiwan ahead of the finalization of the tariff agreement currently being negotiated.
The source explained that Washington asked Taiwan for $400 billion, which is between the amounts pledged by South Korea ($350 billion) and Japan ($550 billion).
It was further noted that the U.S.’s $400 billion request includes $165 billion of TSMC’s investment in the United States.
In response, Taiwan’s Office of Trade Negotiations (OTN) stated that its negotiation team is continuing to discuss U.S.–Taiwan supply chain cooperation through video meetings and document exchanges, following what it calls a “Taiwan-style model.”
The OTN emphasized that it is working toward mutual tariff reductions and also seeking Most-Favored-Nation (MFN) treatment on items affected by Section 232 of the U.S. Trade Expansion Act.
Wu Tsung-tsong, head (minister) of Taiwan’s National Science and Technology Council (NSTC), recently said in an interview that Taiwan and the U.S. share a common understanding on linking support for U.S. semiconductor development with tariff reductions.
Wu added that Taiwan proposed sharing its experience in building science parks—which are key to the success of its semiconductor industry—during the negotiations.
Earlier, after U.S. President Donald Trump decided to impose a 20% tariff on Taiwan—before a trade deal had been finalized—Taiwanese President Lai Ching-te stated that the 20% tariff is merely a temporary rate set in August during the closing stages of negotiations, not Taiwan’s final target. He expressed hope that the rate would be lowered in the final agreement.
Posted by Freewhale98
2 Comments
From my knowledge, Taiwan has smaller economy than Korea. Not sure why Trump is demanding higher investment than Korea. It will be harder for Taiwan to pay for this. Japan and Korea are already experiencing chaos in foreign exchange market after making the investment deal…and the effect on Taiwan would be more devastating.
I’m getting honestly exhausted from these extortion attempts. That he has not bothered to put these so-called “deals” in any document with legal standing or run them through Congress is also concerning because it means that the only thing ensuring their enforcement is the threat of higher tariffs (which either SCOTUS will take away or eventually the next Dem admin will)
Does Trump and the GOP seriously think that they are doing anything of substance here?