By Michelle Ndaga.
Taiwan is pressing ahead with negotiations for more favorable tariff rates following the imposition of a 20% levy by U.S. President Donald Trump, Vice Premier Cheng Li-chiun said on Monday.
Speaking at a news briefing, Cheng said Taiwan’s objective was to secure “a better and more reasonable tariff rate” from Washington, adding that talks were ongoing and progress would be reported to the island’s parliament. The discussions are running alongside a U.S. national security investigation under Section 232 of the Trade Expansion Act of 1962. Taiwan currently has the sixth-largest trade deficit with the U.S., with semiconductors accounting for about 90% of that imbalance.
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chip maker, is a major supplier to technology giants such as Nvidia. Tariff rates for semiconductors, electronics, and information and communication technology key components of Taiwan’s U.S. bound exports will be determined in separate sector-specific negotiations.
