[Trump Tariffs Unlawful] Taiwan Says "Impact of 10% Global Tariff Limited... Will Maintain Close Communication with U.S."

Main Opposition Party Says "We Must Strive to Renegotiate with the United States"

The Taiwanese government has responded cautiously to the U.S. Supreme Court ruling that reciprocal tariffs are unlawful and to the Trump administration's new imposition of a 10% global tariff.

On the 21st, Cabinet spokesperson Lo Hui-jyh said in connection with President Donald Trump signing a "10% global tariff" based on Section 122 of the Trade Act, immediately after the Supreme Court ruling in order to replace reciprocal tariffs, "Our initial assessment is that the shock and impact on Taiwan will be limited," adding, "We will closely monitor the situation and maintain close communication with the United States so that we can identify specific measures and respond in a timely manner."

Regarding the trade agreement and the memorandum of understanding on investment cooperation that Taiwan recently signed with the United States, he also said, "The U.S. government has not yet decided how it will implement the trade agreements it has signed with various countries," and added, "We will continue to closely follow the U.S. government's response measures, evaluate them prudently, and review follow-up response options."

Spokesperson Lo explained that, as of 2024, about 76% of the items Taiwan exports to the United States have undergone, or are undergoing, investigations related to Section 232 of the Trade Expansion Act, stating that "The negotiating team has achieved the goal of most-favored-nation treatment with respect to various tariffs under Section 232," and that this will help mitigate the impact on related industries.

Earlier, on the 12th, the United States and Taiwan concluded a trade agreement. The United States agreed to lower tariffs on Taiwanese goods from the existing 20% to 15% and to apply most-favored-nation level tariffs to semiconductors, one of Taiwan's core export items. Taiwan, in turn, agreed to eliminate or reduce "tariff barriers" on 99% of U.S. industrial and agro-fisheries products. It also decided to immediately abolish tariffs of up to 26% that had been imposed on U.S. beef, dairy products, and corn.

Taiwanese companies are required to invest 250 billion dollars (about 362 trillion won) in the United States, while the government separately provides 250 billion dollars in credit guarantees to encourage their investment in the U.S. market.

The main opposition Kuomintang (KMT) issued a press release the same day, arguing that Taiwan had pledged large-scale investment in the United States in return for U.S. tariff cuts, but that the basis for such investment has been shaken by the Supreme Court ruling. It stressed, "The government must strive to renegotiate with the United States in order to protect Taiwan's economic interests."