Taiwan says 20% US tariff rate is temporary, talks ongoing

TAIPEI: Taiwan President Lai Ching-te said on Friday that the new 20% tariff rate set by the Trump administration on goods imported from the island is "temporary", and the government expects to negotiate a lower figure.

AI Brief

Taiwan's president says the 20% US tariff is temporary and negotiations are ongoing to secure a lower rate.
The tariff is lower than earlier threats but still higher than rates for Japan, South Korea, and the EU.
Despite trade tensions, Taiwan remains a major US trade partner, though its stock market reacted with early losses.

"The 20% tariff rate was never Taiwan's target to begin with. We will continue negotiations and strive for a rate that's more favourable for Taiwan," he told a press briefing.

A Thursday executive order from U.S. President Donald Trump imposed tariffs ranging from 10% to 41% on U.S. imports from dozens of trading partners.

While the 20% rate for Taiwan is less than the 32% threatened in April, it notably exceeds the 15% rates declared for Japan, South Korea and the European Union.

A U.S. official said Lai's statement that negotiations were continuing was "accurate".

"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. We can interpret this as Taiwan's offer being well received and being close to a final agreement," said the official who declined to be identified given the sensitivity of the issue.

Taiwan had the sixth-largest trade deficit with the U.S. last year, exporting about $74 billion more to the U.S. than it took in, according to data from the U.S. and Taiwan governments.

The TAIEX stock index .TWII fell 1.3% in early Friday trade but pared losses to 0.5% by midday.