Exclusive: Taiwan’s Tariff Bargaining Chips Revealed! Guaranteed Full Market Access, Taiwanese Companies to Invest $250 Billion in 4 Years

When imposing reciprocal tariffs on various countries, the Taiwanese government initially assured the public to "sleep well at night." However, the initial tariff rate unexpectedly reached 32%, and it now stands at 20%. Media reports indicated that Taiwan offered up to $400 billion in investments to the U.S., hoping to secure a reciprocal tariff rate of 15%, on par with Japan. According to internal information from the Ministry of Economic Affairs obtained by Storm Media, during the second round of in-person negotiations on reciprocal tariffs in Washington in June, the U.S. side already demanded the elimination of tariffs on agricultural and aquatic products, automobiles and related products, the removal of import restrictions on cars, and military spending reaching 3% of GDP. Taiwan responded to Washington in early August, guaranteeing full market access for U.S. goods.

At the end of June, Vice Premier Zheng Lijun led a delegation to Washington, D.C., for the second round of in-person negotiations on reciprocal tariffs on June 25. The Executive Yuan issued a press release emphasizing that the delegation held comprehensive discussions with U.S. Trade Representative Jamieson Greer and U.S. Secretary of Commerce Howard Lutnick, with both sides acknowledging constructive progress in the negotiations. Taiwan provided detailed responses to Washington in early August, guaranteeing full market access for U.S. goods.

According to Storm Media, which received internal information from the Ministry of Economic Affairs, the U.S. demanded the elimination of tariffs on agricultural and aquatic products, automobiles and related products, the removal of import restrictions on cars, and military spending reaching 3% of GDP. Taiwan responded to Washington in early August, guaranteeing full market access for U.S. goods, including the elimination of tariffs on wheat, corn, soybeans, dairy products, meat and aquatic products, vegetables and fruits, automobiles and related products, chemicals, cosmetics, medical devices, pharmaceuticals, and machinery.

In addition to the above, Taiwan also committed to eliminating non-tariff trade barriers, removing import quotas for U.S. vehicles, simplifying regulatory and approval processes for U.S. pharmaceuticals, resolving long-standing SPS (Sanitary and Phytosanitary Measures) issues related to beef and pork, lifting import restrictions and licensing requirements for U.S. products, promoting imports of U.S. bovine blood and tallow, bison, poultry, egg products, and aquatic products, and recognizing the U.S. regionalization scope for highly pathogenic avian influenza (HPAI).

Taiwan also made commitments regarding investments in the U.S., ensuring that Taiwanese companies will invest a total of $250 billion in the U.S. over four years, focusing on AI servers, semiconductors, ICT (Information and Communication Technology), and electronics manufacturing services. In terms of procurement from the U.S., Taiwan pledged to purchase $130 billion worth of goods over four years and $300 billion over the next decade, including liquefied natural gas, crude oil, aircraft, defense equipment, generators, and agricultural raw materials (soybeans, corn, wheat, beef, etc.). Additionally, Taiwan will provide $400 billion in financial guarantees to promote investments by Taiwanese companies in the U.S.

According to sources within the agriculture and fisheries industry, the elimination of tariffs on agricultural and aquatic products may allow some processors or large enterprises to acquire raw materials at lower prices and process them into finished products. However, it could have a significant impact on small Taiwanese businesses, especially those directly supplying fresh products to the Taiwanese market, military meals, and school lunches, potentially leading to a devastating blow to Taiwan’s primary agricultural and fisheries industries.