Taiwan Says 20% Tariffs Not Final, Awaiting Final-Phase Talks
On August 1, Taiwan’s President Lai Ching-te stated that the United States remains open to continued negotiations on the newly imposed 20% tariffs on most Taiwanese imports, as the two sides have yet to finalize their trade deal.
Tariff Rate: Scheduled to take effect on August 7, the new 20% tariff rate remains tentative, as the U.S. is open to continuing trade negotiations, according to Lai. “From the very beginning, 20 percent has never been Taiwan’s goal in the negotiations,” Lai stated, reaffirming that Taiwan will push for a further reduction while adhering to international norms.
Taiwan’s trade delegation has conducted four rounds of in-person negotiations in Washington, in addition to multiple virtual meetings with U.S. counterparts as part of the ongoing talks.
Semiconductors and Strategic Cooperation: Lai also confirmed that semiconductors are being handled through separate negotiations, and that Taiwan and the U.S. will soon begin formal talks on semiconductors and supply chain cooperation. He emphasized that Taiwan has approached the trade negotiations with sincerity and transparency, aiming not only to help reduce the U.S. trade deficit, but also to broaden and deepen bilateral cooperation, especially in national defense, science, and technology.
The new rate represents a significant reduction from the original 32% tariff, announced in April by U.S. President Donald Trump as part of a sweeping tariff package affecting more than 100 countries. Taiwan’s 20% rate places it on par with Vietnam, Sri Lanka, and Bangladesh, but remains higher than the 15% rate applied to Japan, South Korea, and the European Union, and slightly above the 19% rate imposed on the Philippines.
Sources:
[1] Taiwan’s Presidential Office
[2] Focus Taiwan
[3] Taipei Times
Lai’s U.S. Visit Would Normalize Ties, Reinforce Taiwan Travel Act
Following a Financial Times report on July 28 claiming that President Lai Ching-te’s planned transit through New York was blocked by the Trump administration — an allegation swiftly denied by both the U.S. and Taiwanese governments — the Formosan Association for Public Affairs (FAPA) reaffirmed its longstanding call for high-level U.S.-Taiwan visits as a vital step toward normalizing bilateral relations.
In response to the report, the U.S. State Department clarified that its policy on stopovers for Taiwanese leaders, including presidents, remains unchanged. Taiwan’s Ministry of Foreign Affairs likewise denied the claim, stating that President Lai currently has no immediate travel plans.
The FAPA National President Dr. Su-Mei Kao stated: “High-level visits between the U.S. and Taiwan are fully consistent with the Taiwan Travel Act, which FAPA actively championed and was signed into law by President Donald Trump in 2018. It is U.S. policy to encourage senior Taiwanese officials to visit the United States and engage with their American counterparts.”
Dr. Kao added: “Moreover, Congress has introduced a bipartisan bill — the Taiwan Assurance Implementation Act — to further eliminate outdated, remaining self-imposed restrictions on engagement with Taiwan and its officials. The bill passed the U.S. House . . . this past May with strong bipartisan support.”
Dr. Kao concluded: “We continue to urge President Trump and Secretary of State Marco Rubio to meet with President Lai. High-level meetings between the U.S. and Taiwan would deliver a clear signal that authoritarian China cannot dictate the terms of U.S. engagement with Taiwan. These visits will . . . advance the normalization of U.S.-Taiwan relations, and promote more meaningful cooperation with this vital Indo-Pacific partner.”
Sources:
[1] FAPA
[2] Taipei Times
UK “Ready to Fight” Over Taiwan, Defence Secretary Suggests
On July 27, British Defence Secretary John Healey said that the UK is ready to fight if a conflict breaks out in the Indo-Pacific. Healey made the remarks aboard the British Royal Navy’s HMS Prince of Wales, alongside Australian Deputy Prime Minister and Defence Minister Richard Marles, as the carrier docked in Darwin, Australia, ahead of joint military drills with the U.S. and allied partners.
Remarks: Asked what the UK has been doing to help partners like Taiwan defend against China, Healey said: “If we have to fight, as we have done in the past, Australia and the UK are nations that will fight together. We exercise together and by exercising together and being more ready to fight, we deter better together.”
He later clarified that he was speaking in “general terms,” and that the UK would still prefer to resolve regional disputes “peacefully” and “diplomatically.” “We secure peace through strength, and our strength comes from our allies,” he said.
Background: London has previously refrained from commenting on whether it would intervene directly in potential conflicts in the Taiwan Strait. On July 25, the UK and Australia released a joint statement saying that both sides “agreed on the critical importance of peace and stability across the Taiwan Strait,” without making any reference to potential military action.
Despite this, the UK has steadily ramped up its military investment in the Indo-Pacific. In 2021, it signed the AUKUS security pact alongside the United States to provide Australia with nuclear-powered attack submarines. That same year, Britain announced that two Royal Navy patrol vessels would be based in the region — the first permanent British deployment in Asia since 1997.
Implications: While framed in general terms, Healey’s remarks about being ready to fight over Taiwan represent one of the strongest public statements to date by a British government official. They signal the UK’s intent to deepen engagement with Indo-Pacific partners and bolster joint efforts to deter Chinese aggression against Taiwan, including through the deployment of military forces to the region.
