Taiwan and the United States have reached a “general consensus” on a trade pact that would reduce US tariffs on Taiwanese exports, officials in Taipei have said.
Taiwan’s Office of Trade Negotiations said on Tuesday that the outlines of a deal had been reached following months of negotiations with US officials.
“The goal of the US-Taiwan tariff negotiations has always been to seek reciprocal tariff reductions without stacking tariffs, and to obtain preferential treatment under Section 232,” the office said in a statement, according to the AFP news agency.
The trade office did not immediately respond to media’s request for comment.
US President Donald Trump announced a 32 percent “reciprocal tariff” on Taiwanese exports in April, before lowering the rate to 20 percent in August pending further negotiations.
Countries have made pledges to boost investments in the US in exchange for tariff relief since Trump launched his trade war last year.
Japan and South Korea last year agreed to invest $550bn and $350bn, respectively, to see their tariff rates cut from 25 to 15 percent.
Taiwan’s trade office did not provide details on the deal, but Bloomberg and The New York Times reported that the self-governing island’s tariff rate would be lowered to 15 percent.
As part of the deal, the Taiwan Semiconductor Manufacturing Company (TSMC) would agree to build at least four more production facilities in the US state of Arizona, according to Bloomberg and The New York Times, which cited unnamed officials.
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