Taiwan indicated on Thursday that a long-anticipated tariff agreement with the United States could be finalised soon, as its negotiators travelled to Washington for the latest round of trade talks. Officials said both sides are expected to announce areas of “consensus” following discussions.
The talks centre on reducing tariffs on Taiwanese exports from 20% to 15%, part of a broader effort to strengthen economic cooperation between the two partners. The negotiations also seek to secure most-favoured treatment for Taiwan’s semiconductor products and promote a deeper strategic alignment in the global artificial intelligence (AI) supply chain.
High-Level Delegation Heads to Washington
According to a statement from Taiwan’s cabinet working group on Taiwan-U.S. trade, Vice Premier Cheng Li-chiun and trade envoy Yang Jen-ni left for Washington late Wednesday to attend the sixth round of face-to-face consultations.
“After this round of consultations, both sides are expected to publicly announce the content on where they have reached consensus,” the statement said. Taiwan plans to sign formal documents with the Office of the United States Trade Representative once the details are agreed and will later submit the accord for parliamentary review.
Two sources familiar with the talks said the agreement could be announced before the end of the month, though Taiwan’s Office of Trade Negotiations spokesperson Benjamin Hsu cautioned that “results can only be confirmed when both sides reach agreement.” The White House has not yet commented on the meetings, and it remains unclear which U.S. officials will participate.
Semiconductor Cooperation at the Core
A leading global producer of semiconductors, Taiwan is also using the talks to promote collaboration on technology clusters similar to its own successful science parks. Industry sources say chipmaker TSMC could commit to expanding its presence in the United States under the new framework, potentially adding to its existing $165 billion investment in Arizona.
TSMC declined to comment on whether it would increase investment, while officials emphasised that Taiwanese chips are not currently subject to U.S. tariffs. However, President Donald Trump’s new national security order announced on Wednesday imposed a 25% tariff on specific AI chips, including Nvidia’s H200 processor.
Taiwan’s government said it has previously held “multiple discussions” with Washington on ensuring preferential tariff treatment for semiconductors and related products. “After confirming this with the U.S. side during the current consultations, our side will provide a public explanation,” the statement added.
The potential agreement would mark a significant step in deepening trade ties between the two economies, as both governments look to secure critical technology supply chains amid rising global competition in AI and chip manufacturing.
with inputs from Reuters
