Taiwan Seizes Opportunity: Tariff Pause Opens Door for Crucial Trade Talks with the US

Taiwan Eyes Deeper US Trade Negotiations Amidst Tariff Relief, Focusing on a "Huge" Market.

In a significant development for Taiwan's economic relations, the 90-day pause on most US tariffs, initiated by US President Donald Trump, has opened a window for more in-depth trade talks, according to Minister of Foreign Affairs Lin Chia-lung (林佳龍). Taiwan is eager to leverage this opportunity, focusing on the "huge" US market to achieve a more balanced trade relationship.

The baseline US tariff of 10 percent remains in effect, but the additional 22 percent tariff has been suspended for three months, as stated by Lin during a legislative hearing. This pause provides valuable breathing room for negotiations.

Legislator Wang Ting-yu (王定宇) inquired whether the 75-plus nations that sought talks with the US instead of retaliatory measures were all included in the 90-day suspension. Lin confirmed that Taiwan was on the list, creating a relative advantage for the nation as discussions progress.

The initial announcement by Trump had set a 10 percent baseline tariff on all US imports, with higher rates for those deemed "worst offenders" in "unfair trade practices," including Taiwan. While the government had prepared for the potential economic impact of a 32 percent tariff, the recent pause offers a significant reprieve.

The Cabinet has announced that the negotiation team is led by Vice Premier Cheng Li-chiun (鄭麗君), and includes members from various governmental agencies. Before the legislative session, Lin stated Taiwan was ready to engage in talks with the US on the tariff issue. The pause provides more time for "deeper, more thorough" bilateral negotiations.

Taipei has been in contact with the US, which has "officially acknowledged our outreach," as stated by Lin. He further added that Taiwan has been included on the list for the upcoming trade talks.

The government is also looking to increase purchases from the US to reduce the trade deficit. Minister of Economic Affairs J.W. Kuo (郭智輝) mentioned that state-backed bodies could potentially procure an additional US$200 billion in goods from the US over the next decade, which includes an increase in liquefied natural gas (LNG) imports.

Central bank Governor Yang Chin-long (楊金龍) views the US's formula for calculating "reciprocal" tariffs as unreasonable but emphasized that it targets all countries globally, not specifically Taiwan. Yang highlighted Taiwan's contribution to the US's economy and suggested that Taiwan's holdings of US Treasury securities could be a valuable asset in the upcoming negotiations.