Taipei: Premier Cho Jung-tai announced on Monday that Taiwan’s tariff discussions with the United States are ongoing, with the primary objectives being to secure improved tariff rates, ensure a fair process under U.S. trade law, and prevent overlapping tariffs. Cho addressed lawmakers during a plenary session of the Legislature, emphasizing the importance of their support once an agreement is finalized and ready to be submitted to the Legislative Yuan under the Conclusion of Treaties Act.

According to Focus Taiwan, Cho highlighted that the U.S. “reciprocal” tariff, which took effect on August 7, had been negotiated down from the base rate plus 32 percent to a provisional tariff of 20 percent. He noted that products such as steel, auto parts, pharmaceuticals, and semiconductors are exempt from tariffs due to national security considerations under Section 232 of the U.S. Trade Expansion Act, although talks with Washington continue.

Cho pointed out that a recent reassessment indicated the change in tariffs has reduced the anticipated negative impacts on Taiwan’s exports, production, GDP, and employment by approximately half. However, the government is committed to a comprehensive review of affected sectors. Industries facing the most significant impact include hand tools, machine tools, plumbing hardware, heavy electrical equipment, and plastic products. In agriculture, the sectors affected are phalaenopsis orchids, edamame soybeans, and mahi-mahi fish.

The premier assured that the government will provide assistance through a special “resilience” budget and will prioritize employment stability. Currently, 73 firms and 2,388 workers have been directly impacted by the tariffs. Furthermore, Cho mentioned that technical discussions on various aspects such as tariffs, non-tariff trade barriers, trade facilitation, and supply chain resilience are nearly complete, though a final agreement has yet to be reached.