Welcome back to Taiwan Tariff News and Tracker. I'm your host, and today we're breaking down some significant developments in US-Taiwan trade negotiations that just unfolded this week.
The Trump administration is actively accelerating tariff talks with Taiwan, with negotiations focused on what officials are calling the "Taiwan model." According to Taiwan's Executive Yuan spokeswoman Michelle Lee, Taipei is seeking a substantial reduction of the current 20 percent tariff imposed by the US, while working to ensure this rate won't be added on top of existing most-favored-nation tariffs.
Here's what makes this interesting for listeners: the Trump administration is reportedly eyeing an investment figure that would fall between South Korea's 350 billion dollars and Japan's 550 billion dollars. The Taiwan model differs from those deals because it's driven by individual companies' international branching strategies, not a government-directed plan. Taiwanese firms would invest in the US to get closer to clients and boost competitiveness, while the government provides financial and credit guarantee support.
One critical element in these negotiations is semiconductor tariffs. Lee emphasized that tariff exemptions or reductions for semiconductors and chip-related products are essential for Taiwanese companies to make these US investments. Taiwan is also working to secure most-favorable-nation treatment under Section 232 of the Trade Expansion Act as Washington conducts a national security investigation into semiconductor imports.
In related news, the US just approved its first military sale under the current Trump administration. On November 13th, Washington notified Congress of a 330 million dollar sale to Taiwan of non-standard spare and repair parts for aircraft. Taiwan's Presidential Office expressed gratitude for this move, noting it strengthens the cooperative security relationship between the two countries.
It's worth noting that tariff rates across the board have climbed dramatically. According to recent data, US tariff revenue exceeded 30 billion dollars per month as of September 2025, compared to under 10 billion monthly in 2024. The average applied US tariff rate spiked from 2.5 percent in January to an estimated 27 percent by April, marking the highest level in over a century.
For Taiwan's economy, these negotiations carry significant weight. The island is balancing requests for tariff relief while potentially committing to substantial new investments in America. The negotiations are still in their early stages, with both sides preparing groundwork for detailed discussions.
Thank you so much for tuning in to Taiwan Tariff News and Tracker. Make sure to subscribe so you don't miss our next update on this developing story.
This has been a Quiet Please production. For more, check out quietplease.ai.
For more check out
https://www.quietperiodplease.com/Avoid ths tariff fee's and check out these deals
https://amzn.to/4iaM94QThis content was created in partnership and with the help of Artificial Intelligence AI
