Taiwan, US Reach General Consensus on Trade Deal
Taiwan has reached a general consensus with the United States on a trade deal, the democratic island's negotiators said Tuesday, after months of talks.
Taiwan and the United States began negotiations in April to hash out a trade deal after US President Donald Trump slapped a 32 percent tariff on Taiwanese exports, which was later lowered to 20 percent, as part of his sweep of measures against dozens of trade partners.
Taiwanese President Lai Ching-te has pledged to boost investment in the United States and increase defence spending as his government tries to further reduce the levy on its shipments, as well as avoid a toll on its semiconductor chip exports.
Taiwanese President Lai Ching-te has pledged to boost investment in the United States and increase defence spending as his government tries to further reduce the levy on its shipments, as well as avoid a toll on its semiconductor chip exports.
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"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," the Office of Trade Negotiations said in a statement, adding there was a "general consensus" on these issues.
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Section 232 refers to part of the US Trade Expansion Act that allows tariffs to be imposed when national security is found to be at risk.
"Both sides are currently discussing the schedule for a concluding meeting, and an announcement will be made once it is confirmed," the says.
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Taiwan's trade officials also vowed to provide "a complete explanation of the negotiations and the agreement" to the opposition-controlled parliament and the public.
Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics.