Taiwan is included in the initial group for trade negotiations with the US, President William Lai said on April 12. The discussions aim to address a 10% tariff on Taiwanese exports and explore options to eliminate it.

US Trade Representative Jamieson Greer confirmed discussions with Taiwanese and Israeli officials, following earlier talks with Vietnam.

This comes after President Donald Trump delayed higher tariffs on several partners but kept the 10% duty on most imports.

Lai said Taiwan is ready to negotiate to protect national interests and support industry. Taiwan’s proposals, including boosting US procurement and investment while reducing trade barriers, received a positive response from Washington.

He also raised concerns about “origin laundering” and called for cooperation among sectors and political parties.

🔗 Source: Taipei Times

🧠 Food for thought

1️⃣ Taiwan’s trade relationship with the US has fundamentally transformed over decades

Taiwan’s economic ties with the US have undergone a dramatic shift since their peak in the 1990s, creating the context for today’s tariff negotiations.

In 1990, the US was Taiwan’s dominant export market, receiving 32.3% of Taiwan’s exports worth $21.8 billion. By 2015, although the value of exports to the US rose to $34.2 billion, the US share had fallen to just 12.21% of Taiwan’s exports 1.

This decline coincided with Taiwan’s manufacturers relocating production to China and ASEAN countries, causing exports to China (including Hong Kong) to surge from 12.74% in 1990 to 41.78% by 2010 1.

Today’s tariff situation reflects a complex trading history where Taiwan’s trade surplus with the US shrank from 72.31% of its overall trade surplus in 1990 to 15.22% in 2015, even as total bilateral trade grew substantially 1.

The current 32% tariff threat comes at a time when Taiwan faces particular vulnerability. Its exports to the US now account for 28.5% of its total exports, showing increased dependence on American markets in recent years despite the earlier diversification 2.

2️⃣ Taiwan’s entry into global trade systems required extraordinary diplomatic navigation

Taiwan’s current trade negotiations with the US build upon a foundation of complex diplomatic maneuvering that has shaped its international trade position.

Taiwan joined the WTO in 2002 only after an arduous 15-year process requiring 240 negotiation sessions with 30 member nations, demonstrating the significant diplomatic hurdles Taiwan faces in international trade forums 3.