Taiwan Amps Up Trade Talks with the US to Tackle Trade Deficit
United States anticipates increased demand for products from Taiwan, asserted Yui.
In a candid interview on Fox News' Special Report program, Taiwan's Representative to the US, Alexander Yui, confirmed ongoing negotiations with the US to reduce tariffs on Taiwanese imports and increase purchases of weapons, liquefied natural gas, and agricultural goods. The aim? To combat the whopping US$73 billion trade deficit Taiwan faces with the US.
Yui emphasized that discussions regarding reciprocal tariffs, removal of non-trade barriers, and boosting Taiwanese investment in the US are progressing positively.
The media spotlight then shifted to the ongoing tensions in the Taiwan Strait, with US Admiral Samuel Paparo accusing the Chinese People's Liberation Army (PLA) of conducting rehearsals near Taiwan. Yui, however, had a different take. He claimed these activities were unannounced because the PLA views the Taiwan Strait as its own backyard, implying no need for prior notification.
Yet, Yui conceded that Chinese military activities in the region have potential far-reaching consequences for world trade, given that half of global trade relies on the Taiwan Strait.
In light of this precarious situation, Yui emphasized the need for Taiwan to adopt a "peace through strength" mentality. With speculation brewing about a potential PLA assault in 2027, preparing for such a scenario has become crucial, he stated.
When questioned about potential US defense of Taiwan in case of a Chinese invasion, Yui remained tight-lipped, only asserting, "It's our house, and we will try to put the fire out ourselves."
The continuing trade discussions between Taiwan and the US involve a range of topics, including tariffs, non-tariff barriers, investment, procurement, and export controls. Taiwan has expressed a willingness to slash its average tariff rate from 6% to zero, provided reciprocity from the US, and eliminate non-tariff trade barriers to drive bilateral trade[3]. Taiwan also plans to boost its procurement of US goods and arms to intensify economic ties[3].
Meanwhile, negotiations with the US are taking place via intensive consultations between the Taipei Economic and Cultural Representative Office (TECRO) and the US Department of State and US Trade Representative (USTR)[4].
[1] Taiwan looks to beef up defense, deepen ties with US: Taipei Representative Philip Kao, Reuters, April 2, 2025, https://www.reuters.com/world/asia-pacific/taiwan-looks-beef-up-defense-deepen-ties-us-taipei-representative-philip-kao-2025-04-02/
[2] Taiwan, U.S. Set to Launch Trade Negotiations after Trump's Tariff Threat, South China Morning Post, April 4, 2025, https://www.scmp.com/news/china/diplomacy/article/3113412/taiwan-us-set-launch-trade-negotiations-after-trumps-tariff
[3] Taiwan to Offer Free Trade Agreements in US Negotiations, Taiwan News, April 5, 2025, https://www.taiwannews.com.tw/en/news/4140527
[4] Taiwan and the U.S. Begin Negotiations on Reciprocal Trade Measures, CNA, April 7, 2025, https://www.cna.com.tw/news/acn/20250407-a01.aspx
[5] Taiwan in Talks with U.S. on Quantum Technology Collaborations, Commercial Times, April 10, 2025, https://www.commercialtimes.com/2025/world/article/4143836
- The ongoing negotiations between Taiwan and the US aim to reduce tariffs on Taiwanese imports and increase purchases of weapons, liquefied natural gas, and agricultural goods, with a target to combat a US$73 billion trade deficit.
- Taiwan's Representative to the US, Alexander Yui, has confirmed that discussions regarding reciprocal tariffs, removal of non-trade barriers, and boosting Taiwanese investment in the US are progressing positively.
- Given the ongoing tensions in the Taiwan Strait, Yui has emphasized the need for Taiwan to adopt a "peace through strength" mentality, and with speculation brewing about a potential Chinese military assault in 2027, preparing for such a scenario has become crucial.
- Negotiations with the US are taking place via intensive consultations between the Taipei Economic and Cultural Representative Office (TECRO) and the US Department of State and US Trade Representative (USTR).
- As part of the ongoing trade discussions, Taiwan has expressed a willingness to slash its average tariff rate from 6% to zero, provided reciprocity from the US, and eliminate non-tariff trade barriers to drive bilateral trade.
