As the United States and Taiwan continue to advance tariff negotiations, US media have revealed that the US is demanding that Taiwan invest between $350 billion and $550 billion (1.44 trillion to 2.27 trillion ringgit) in the US, while Taiwan plans to complete the agreement by the end of November.
Since August, the US has imposed a provisional 20% reciprocal tariff rate on Taiwan. According to a report by the American political news website Politico, although the US Supreme Court may overturn President Trump’s sweeping tariffs on almost all countries, Taipei is still actively seeking to reach a trade agreement with the US. The main reason is that Taiwan is more concerned that the US Department of Commerce is conducting an investigation under Section 232, which may result in new tariffs on Taiwan’s semiconductor industry.
Section 232 refers to Section 232 of the United States Trade Expansion Act of 1962, which grants the US president the power to investigate the impact of imported products on national security, and, if necessary, to impose restrictions such as tariffs or quotas.
Currently, the Trump administration and Taiwan are negotiating one clause in the agreement. This clause requires Taipei to invest tens of billions of dollars in the US, modeled after similar commitments previously reached by the US with South Korea and Japan. People familiar with the Taiwan-US negotiations point out that the investment amount will be “between South Korea’s $350 billion and Japan’s $550 billion.”
Insiders also revealed that if the US government shutdown ends soon, Taiwan plans to complete the agreement by the end of this month.
Another source was more cautious about when the negotiations would conclude, citing Trump’s frequent last-minute changes in trade policy. “I have given up predicting when Trump will finally agree.”
According to a press release from Taiwan’s presidential office, on the 11th President Lai Ching-te stated that the US-Taiwan reciprocal tariff negotiations are just one step away from completion, with a current provisional rate of 20%, aiming to achieve a reduced rate with no overlapping tariffs. He also said that he hopes during the US investigation into semiconductor imports under Section 232, Taiwan can obtain “most favored nation treatment.”