Taiwan President Lai Ching-te said the new 20% US tariff on Taiwanese imports is “temporary” and plans to negotiate for a lower rate.
Taiwan President Lai Ching-te stated that the U.S. government’s new 20% tariff on Taiwanese imports, imposed by a recent executive order from President Donald Trump, is “temporary” and that Taiwan plans to negotiate for a lower rate.
He also mentioned that tariffs on semiconductors, electronics, and ICT products will be determined separately.
The 20% tariff is lower than the previously threatened 32% but higher than the 15% rates secured by Japan, South Korea, and the EU in their trade agreements.
“The 20% tariff rate was never Taiwan’s target to begin with. We will continue negotiations and strive for a rate that’s more favourable for Taiwan,” Lai said.
Taiwan plans to resume talks after the US concludes its probe, with results expected in two weeks, according to Commerce Secretary Howard Lutnick. A US official also confirmed that Taiwan’s statement about ongoing negotiations is accurate.
A key issue for Taiwan is the severity of chip tariff rates, as the country is home to TSMC, the world’s largest contract chipmaker and a major producer of advanced AI chips. TSMC, which serves clients like Nvidia and Apple, announced a USD 100 billion U.S. investment with Trump in March, in addition to $65 billion for three Arizona plants.
Earlier, President Trump issued an executive order imposing tariffs of 10% to 41% on US imports from multiple countries on 31 July 2025.
