Taipei: The American Chamber of Commerce in Taiwan (AmCham Taiwan) has urged Washington and Taipei to stay in close contact and work to prevent extended disruptions to business operations, following Washington’s announcement of a 20 percent tariff on Taiwanese imports on July 31, U.S. time.

According to Focus Taiwan, AmCham Taiwan Chairperson Dan Silver emphasized the need for both governments to maintain close communication to avoid prolonged disruptions that could weaken business confidence. President Lai Ching-te also addressed the issue, stating that Taiwan is negotiating with the U.S. to lower the “provisional” tariff rate. He highlighted that Taiwan’s negotiating team managed to reduce the tariff from an initial 32 percent, announced in early April by U.S. President Donald Trump, but acknowledged that 20 percent was not the administration’s ultimate goal.

The impending tariff, set to take effect on August 7, is expected to increase short-term costs for Taiwanese exporters and potentially impact investment and production decisions, particularly for small and medium-sized enterprises (SMEs). Citing data from Taiwan’s Ministry of Economic Affairs, the statement identified machine tools, plastics, electronic materials, molds, and hand tools as the most vulnerable industries.

AmCham, representing over 580 international companies operating in Taiwan, reiterated its commitment to monitoring the evolving trade landscape, supporting government-industry engagement, and assisting its members. AmCham Taiwan President Carl Wegner underscored the importance of transparency and partnership, noting the strength of the trade relationship lies not only in market access but also in a shared commitment to innovation.