Taiwan relief over US 20% tariff but pressure mounts for island to concede more

Published: 9:00am, 1 Aug 2025Updated: 10:56am, 1 Aug 2025

Taiwan has temporarily breathed a sigh of relief after learning that its exports to the United States will face a 20 per cent tariff – lower than the initially feared 32 per cent – pending further negotiations for a reduced rate.

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But their concerns are far from over, as pressure mounts over whether the island must make sweeping concessions, including a reported US$400 billion investment pledge, to secure a more favourable rate before the 20 per cent tariff takes effect on August 7.

So far, the latest tariff list released by the White House makes no mention of any investment pledge.

Adding to the uncertainty are reports that planned visits to the US by Taiwanese leader William Lai Ching-te and Defence Minister Wellington Koo Li-hsiung were deferred at the last minute.

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US ‘made trade deals’ with Thailand, Cambodia, commerce secretary Lutnick says

US ‘made trade deals’ with Thailand, Cambodia, commerce secretary Lutnick says

Analysts said the developments were far from coincidental and might mark a deliberate effort by Washington to dial down Taiwan-related tensions as it sought a breakthrough in trade talks with Beijing.

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