Taiwan, US Reach ‘General Consensus’ on Trade Deal After Months of Talks
Taiwan said Tuesday it has reached a “general consensus” with the United States on a trade deal, following months of negotiations triggered by steep US tariffs on Taiwanese exports.
Trade talks began in April after US President Donald Trump imposed a 32 percent tariff on Taiwanese goods as part of broader measures targeting dozens of trade partners. The levy was later reduced to 20 percent.
Taiwanese President Lai Ching-te has pledged to increase investment in the United States and raise defense spending as part of efforts to further ease the tariffs and avoid potential duties on semiconductor exports.
“The goal of the US-Taiwan tariff negotiations has always been to seek reciprocal tariff reductions without stacking tariffs, and to obtain preferential treatment under Section 232 for semiconductors, semiconductor derivatives, and other items,” Taiwan’s Office of Trade Negotiations said in a statement, adding that both sides had reached a “general consensus” on these issues.
Section 232 refers to a provision of the US Trade Expansion Act that allows tariffs to be imposed on national security grounds.
The office said discussions are ongoing regarding the timing of a final meeting, and an official announcement will be made once the schedule is confirmed. Taiwanese trade officials also said they would provide a full briefing on the negotiations and the agreement to the opposition-controlled parliament and the public.
Focus on Semiconductors
Taiwan is a global leader in semiconductor manufacturing, producing chips that are critical to the world economy as well as a wide range of electronic products.
President Trump has previously accused Taiwan of undermining the US chip industry, and his administration has made clear its desire to see more semiconductor production relocated to American soil. Last year, the US government launched Section 232 investigations into semiconductors and chip-making equipment.
Taiwan recorded its seventh-largest trade surplus with the United States in 2024, totaling $73.9 billion. More than half of its exports to the US consist of information and communications technology products, including semiconductors.
In an effort to strengthen ties with Washington, President Lai has committed to raising defense spending to more than 3 percent of GDP this year and to 5 percent by 2030.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has also pledged an additional $100 billion in investment in the United States.
However, Deputy Foreign Minister Francois Chih-chung Wu recently told AFP that Taiwan intends to continue producing its most advanced semiconductor chips at home.
