Overview

• The United States imposed a temporary 20% tariff on Taiwanese shipments effective August 1, warning of a rise to 32% if no trade agreement is reached.
• Taipei and Washington have held four in-person negotiation rounds and multiple video conferences but remain unable to finalize a deal.
• U.S. trade negotiators are pressing Taiwan to match Japan’s $550 billion and South Korea’s $350 billion investment pledges to qualify for the lowest 15% tariff tier.
• Taiwan is reportedly considering a $300–400 billion investment package—equivalent to four years of its central government budget—to secure lower duties.
• Taiwan’s semiconductor industry, which produces over half of global chips and nearly all high-end ones, faces supply-chain risks if punitive tariffs take full effect.