Taiwan's Lai Ching-te on 20% US Tariff: "Provisional Rate... May Be Lowered Later"

As President Donald Trump of the United States decided to impose a 20% tariff on Taiwan, President Lai Ching-te of Taiwan stated that the 'provisional rate' was set in the final stage of negotiations and that it could be lowered in the final agreement.

On August 1, President Lai wrote on the social networking service Facebook, "Just now, the United States informed Taiwan's negotiation team in Washington, D.C. that Taiwan's 'provisional tariff' is 20%," and explained, "The main reason is that the final meeting between Taiwan and the United States has not yet been completed as part of the negotiation process."

Lai Chingte, President of Taiwan. AP Yonhap News

He continued, "The United States has announced a 20% 'provisional rate' for Taiwan for now, but if an agreement is reached in the future, the rate may be further reduced," adding, "Going forward, Taiwan and the United States will also discuss supply chain cooperation and issues related to Section 232 of the U.S. Trade Expansion Act."

President Lai commented on Taiwan's negotiation team, saying, "Through four rounds of working-level negotiations and multiple video conferences, we have completed technical consultations and upheld the four major tasks of safeguarding national interests, protecting industrial security, ensuring public health, and securing food security."

He added, "Although the tariff rate announced by the United States today is only a temporary measure, we will obtain and maintain a reasonable rate and complete the final stage of the tariff negotiations."

President Trump signed an executive order adjusting reciprocal tariff rates by country on the afternoon of July 31, U.S. time. The tariff rate imposed on Taiwan, where trade negotiations are still ongoing, was reduced from the previously notified 32% to 20%. Currently, Taiwan's negotiation team, led by Deputy Premier Cheng Li-chun, is conducting trade negotiations in the United States. According to foreign media reports, Taiwan is reportedly aiming for a rate below 20% in its negotiations with the United States.