Vice Premier Cheng Li-chiun said Feb. 24 that the government will continue to negotiate with the U.S. to ensure Taiwan receives the most favorable treatment based on the recently concluded bilateral reciprocal trade agreement.
According to the Executive Yuan, Cheng made the remarks during a press event that was also attended by Minister without Portfolio Yang Jen-ni and the heads of the Ministries of Agriculture, Economic Affairs, Finance and Labor, as well as National Development Council.
Taiwan and the U.S. concluded a reciprocal tariff agreement Jan. 15 in Washington D.C. that set U.S. tariffs on Taiwanese exports at 15 percent without stacking them on existing most-favored-nation rates, and granted semiconductors and related products from Taiwan most favorable treatment under Section 232 of the Trade Expansion Act of 1962. The two also signed an investment memorandum of understanding.
The vice premier’s remarks came in response to the Feb. 20 ruling by the U.S. Supreme Court that invalidated the reciprocal tariffs imposed by President Donald Trump, who immediately invoked Section 122 of the Trade Act of 1974 to impose a global 10 percent tariff and then raised that to 15 percent the next day.
Following the developments, Premier Cho Jung-tai met with Cheng and other senior cabinet members several times to discuss the potential impact of Section 122 and formulate response measures.
Citing statistics from 2024, Cheng said 76 percent of Taiwan’s exports to the U.S. in value terms came from products applicable to Section 232 investigation, while the remaining 24 percent are subject to reciprocal tariffs.
As the Supreme Court ruling does not involve Section 232, it will not affect Taiwan’s most-favored-nation status under the bilateral investment MOU, Cheng said. Local products, including auto and aviation components and parts, and lumber and furniture, will continue to enjoy the most preferential treatment, with semiconductors and related products also to be included, she added.
Since recent developments clearly indicate that Washington D.C. will continue to adopt different tools to uphold the current administration’s tariff policies, the vice premier said the trade negotiation team has contacted the U.S. over the past two days, and will continue to keep a close eye on related developments to ensure Taiwan and the local sectors’ best interests. (SFC-E)
Write to Taiwan Today at ttonline@mofa.gov.tw
According to the Executive Yuan, Cheng made the remarks during a press event that was also attended by Minister without Portfolio Yang Jen-ni and the heads of the Ministries of Agriculture, Economic Affairs, Finance and Labor, as well as National Development Council.
Taiwan and the U.S. concluded a reciprocal tariff agreement Jan. 15 in Washington D.C. that set U.S. tariffs on Taiwanese exports at 15 percent without stacking them on existing most-favored-nation rates, and granted semiconductors and related products from Taiwan most favorable treatment under Section 232 of the Trade Expansion Act of 1962. The two also signed an investment memorandum of understanding.
The vice premier’s remarks came in response to the Feb. 20 ruling by the U.S. Supreme Court that invalidated the reciprocal tariffs imposed by President Donald Trump, who immediately invoked Section 122 of the Trade Act of 1974 to impose a global 10 percent tariff and then raised that to 15 percent the next day.
Following the developments, Premier Cho Jung-tai met with Cheng and other senior cabinet members several times to discuss the potential impact of Section 122 and formulate response measures.
Citing statistics from 2024, Cheng said 76 percent of Taiwan’s exports to the U.S. in value terms came from products applicable to Section 232 investigation, while the remaining 24 percent are subject to reciprocal tariffs.
As the Supreme Court ruling does not involve Section 232, it will not affect Taiwan’s most-favored-nation status under the bilateral investment MOU, Cheng said. Local products, including auto and aviation components and parts, and lumber and furniture, will continue to enjoy the most preferential treatment, with semiconductors and related products also to be included, she added.
Since recent developments clearly indicate that Washington D.C. will continue to adopt different tools to uphold the current administration’s tariff policies, the vice premier said the trade negotiation team has contacted the U.S. over the past two days, and will continue to keep a close eye on related developments to ensure Taiwan and the local sectors’ best interests. (SFC-E)
Write to Taiwan Today at ttonline@mofa.gov.tw
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