Taiwan says it has reached 'broad consensus' with US on tariff talks

TAIPEI: Taiwan and the U.S. have reached a "broad consensus" on their tariff talks and are discussing a timetable for holding a concluding meeting, Taipei said on Tuesday, as a source familiar with the matter said an announcement could come by the end of the month.

AI Brief

Taiwan seeks to reduce US tariffs on its exports from 20% to 15% in ongoing trade talks.
The US wants TSMC to build at least five more semiconductor facilities in Arizona.
Both sides have reached broad consensus and aim to finalise the deal by the end of January.

Taiwan is aiming for tariffs on its exports to the U.S. to be cut to 15% from 20%, the government said in December.

A major semiconductor producer, Taiwan has repeatedly said its offer to the U.S. has included help in replicating the island's success in building tech clusters around dedicated science parks.

The Trump administration is nearing a trade deal with Taiwan to reduce its tariff rate to 15% and wants chipmaker TSMC to commit to building at least five more facilities in Arizona, the New York Times reported on Monday.

Responding to the report, Taiwan's Office of Trade Negotiations said its goal has always been to get a reduction in the tariff rate.

"Taiwan and the United States have reached broad consensus on the relevant issues," it said, without giving details. "The two sides are currently discussing the timetable for holding a concluding meeting."

A source familiar with the talks, speaking to Reuters on condition of anonymity given the sensitivity of the matter, said an agreement could be unveiled before the end of January.

"It's now just a matter of getting all the final details in order," the source added while declining to provide further details.

The Office of the United States Trade Representative did not immediately respond to a request for comment outside of normal business hours in Washington.

TSMC declined to comment on whether it would invest more in the U.S. on top of the US$165 billion that it has already pledged.

Taiwan's chips are not subject to the U.S. tariffs.