US tariff on Taiwan "temporary," says President William Lai

Taipei [Taiwan], August 2 (ANI): The United States has imposed a 20 per cent tariff rate on goods from Taiwan, which is considered "temporary" by Taiwanese President William Lai, who expects further negotiations to secure a lower rate, Taipei Taiwan reported.
This move is part of the US's "reciprocal" tariffs aimed at reducing trade imbalances.
The tariffs on semiconductors, electronics, and information technology products will be determined separately under future US sectoral measures, as per Taipei Taiwan.
The rate set by the US was one of several so-called "reciprocal" tariffs imposed by US President Donald Trump, just hours before a deadline to finalise trade frameworks with his administration.
According to Taipei, Taiwan, the US initially proposed a 32 per cent tariff on Taiwanese goods in April, which was later reduced to 20 per cent. However, Taiwan's tariff rate exceeds those of regional competitors like Japan and South Korea, which face a 15 per cent levy.
Notably, the tariff is set to take effect next Thursday after being formalised in an executive order signed by Trump.
According to an economist at Barclays Bank, key Taiwanese exports, such as semiconductors, are largely exempt; the effective average tariff on shipments from Taiwan would rise to 8.3 per cent from 5.8 per cent.
"The 20 per cent tariff rate was never Taiwan's target to begin with. We will continue negotiations and strive for a rate that is more favourable for Taiwan," Lai told a news briefing.
Trade talks between the US and Taiwan are continuing, a US official confirmed on Friday, adding that a final agreement is close.
"The interim rate is lower than the original rate, and it's much lower than that of several other major trading partners with ongoing negotiations," said the official.
"Taiwan's offer was well received, and the two sides are close to a final agreement," the official added.
Taiwan is also awaiting the outcome of a US investigation under Section 232 of the Trade Expansion Act, which includes probes into sectors such as semiconductor products, a cornerstone of Taiwan's exports that remains exempt from the newly imposed tariffs.
"Taiwan and the US will continue negotiations, with upcoming discussions to also include supply chain cooperation and issues related to the Section 232 investigation," the Executive Yuan said. "If an agreement is reached, there is a possibility of further reducing reciprocal tariff rates and securing preferential treatment on tariffs related to the Section 232 investigation."
The final tariff rates would inevitably impact Taiwanese industry, Lai said. (ANI)