Taiwan Gains Breathing Room: U.S. Pauses Tariffs for 90 Days

A temporary reprieve as Taiwan engages in trade talks with the United States.

Taipei, Taiwan – Taiwan has secured a temporary reprieve from escalating U.S. tariffs, according to Foreign Minister Lin Chia-lung (林佳龍). The announcement comes as the island nation prepares for potential trade negotiations with the United States.

The U.S. has implemented a 90-day pause on the "reciprocal" tariffs, offering a window for dialogue. While the baseline tariff of 10 percent on Taiwanese goods, which came into effect on April 9th, remains in place, the additional 22 percent tariff has been suspended, Lin confirmed during a legislative hearing.

During the hearing, Democratic Progressive Party (DPP) lawmaker Wang Ting-yu (王定宇) inquired whether the over 75 countries that had proposed talks with the U.S. had all received this pause. Lin confirmed Taiwan's inclusion, though details on other countries remained unclear.

"The temporary baseline 10 percent tariff is now giving Taiwan a relative advantage point [pending further talks]," Lin said, highlighting a potential strategic advantage during the negotiation period.

The situation arose after U.S. President Donald Trump announced a 10 percent baseline tariff on all imports, with higher rates for partners deemed to engage in "unfair trade practices," including Taiwan. The Taiwanese government had been bracing for the potential impact of a 32 percent tariff, which briefly took effect on April 9th.

However, in a surprising move, Trump announced a 90-day pause on these tariffs for targeted countries, excluding China, which will face a 125 percent tariff. While the official list of included countries is not yet available, Lin confirmed Taiwan's participation in the suspension.

Lin emphasized that Taiwan is prepared to engage in discussions with the U.S. regarding the tariff issue. This pause provides time to prepare for "deeper, more thorough" bilateral negotiations.

The Ministry has already been in contact with the U.S., and according to Lin, the U.S. has "officially acknowledged our outreach," stating that Taiwan has been included on the list for upcoming trade talks. Details regarding negotiation timelines were not provided, but information exchange is underway, with the U.S. requesting data from Taiwan, which is being provided.