U.S. Tariff Strategy & Timeline
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In April 2025, President Trump imposed a 32% “reciprocal tariff” on most Taiwanese imports—excluding semiconductors—but then paused it and imposed a 10% baseline rate while negotiations took place theguardian.com+15en.wikipedia.org+15taipeitimes.com+15.
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The suspension was set for 90 days, expiring on July?9,?2025, after which the original 32% rate would be reinstated—unless a deal is finalized focustaiwan.tw+1time.com+1.
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Treasury Secretary Bessent confirmed that if no agreement is reached by July?9, tariffs would go into effect on August?1 barrons.com+6m.economictimes.com+6admis.com+6.
Taiwan’s Position & Negotiation Status
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Taiwan’s Economics Minister Kuo Jyh-huei stated today (July 7) that negotiations are still “under way” focustaiwan.tw.
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In recent legislative updates, he declined to specify whether Taiwan would keep the 32% rate or whether Taiwanese firms might relocate en.wikipedia.org+4taipeitimes.com+4en.wikipedia.org+4.
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Taiwan is aiming for a zero-tariff outcome, in part by deepening investment links—including semiconductor investments in the U.S.—without resorting to retaliatory duties nypost.com+7reuters.com+7finance.yahoo.com+7.
What Comes Next?
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July?9 deadline – If no deal is agreed, the reciprocal 32% tariff is reinstated on August?1.
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If Taiwan reaches a bilateral agreement, it could avoid the rate hike—or even lower tariffs.
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Taiwan will likely continue negotiating in the coming days. The government has emphasized protecting Taiwanese businesses and preventing origin fraud reuters.com+15taipeitimes.com+15focustaiwan.tw+15.
Why It Matters
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This tariff targets non-semiconductor exports from Taiwan, affecting key sectors outside of tech—like machinery, chemicals, and industrial equipment. A 32% duty would dramatically increase costs for U.S. importers and more, unless offset by preferential access .
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Taiwan is seeking to avoid mutual escalation (no retaliatory tariffs), opting instead for deeper integration via trade and investment with the U.S. .
Summary
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Current status: Talks ongoing; no resolution yet as of July 7.
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Deadline: July?9—key date before tariffs snap back.
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Key risk: 32% tariff returns on August?1 without a deal.
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Taiwan’s goal: Avoid tariff hike, aim for tariff elimination, and strengthen economic ties.
