Taiwan Pursues Reduction Of U.S. Tariffs To 15% In Ongoing Trade Negotiations

Taiwan is seeking to lower tariffs on its exports to the United States to 15% from the current 20%, while assistance in training U.S. workers is not among the “conditions” under discussion in the trade talks, senior Taiwan officials said on Monday. A major semiconductor producer, Taiwan has repeatedly emphasized the “Taiwan model” in negotiations, aiming to replicate the island’s success in developing technology clusters around dedicated science parks.

Responding to questions in parliament, Taiwan’s top trade negotiator, Jenni Yang, confirmed the goal is to reduce the rate to 15%. Last week, Reuters reported that President Donald Trump’s administration was negotiating a deal that could require Taiwan to commit to new investment and training of U.S. workers in chip manufacturing and other advanced industries, though sources familiar with the matter noted details could change before the agreement is finalized.

TSMC (2330.TW), the world’s largest contract chipmaker, is investing $165 billion in the United States to build factories in Arizona. If TSMC requires government assistance for worker training, that could be considered, Taiwan Economy Minister Kung Ming-hsin said, adding, “This is not one of the negotiating conditions,” in the U.S. talks, however.

Neither Kung nor Yang provided a precise timeline for reaching a pact, though Yang said the government would strive to complete it before the end of this year. Taiwan’s semiconductor exports are not subject to the U.S. tariffs of 20%.

In August, Trump said U.S. semiconductor imports would face a tariff of about 100%, exempting companies manufacturing in the United States or those that have committed to do so. Such companies include TSMC, though U.S. officials are privately indicating they might not impose the tariffs soon, Reuters reported last month.