Taiwan is reportedly on the verge of securing a Taiwan US trade deal as the Trump administration’s tariff grace period nears its end. Senior US advisors have told news sources that they expect to finalize agreements with over a dozen major trading partners before the July 9 deadline. However, previous deals with countries like China and the UK suggest that these agreements might only address limited topics, leaving many important issues for later negotiations.
As the deadline approaches, world leaders have stepped up their lobbying efforts by sending delegations to Washington. At the same time, President Trump and his advisors have made conflicting statements about how the talks might be resolved. A source close to the discussions revealed that the US is close to finalizing deals with Taiwan and Indonesia. There are also ongoing talks that could lead to agreements with Vietnam and South Korea.
In late June, Taiwan dispatched a delegation led by Vice Premier Cheng Li-chun and chief negotiator Yang Jen-ni to Washington, D.C. for a two-day second round of talks. Officials described the negotiations as making “constructive progress.” Both sides agreed that expanding bilateral investment would enhance prosperity and development for their economies. This shared goal has helped keep talks moving forward despite the challenges.
Back in April, the US announced plans to impose a 32% tariff on Taiwanese goods. Shortly afterward, it granted a 90-day grace period to delay the tariffs, although a 10% baseline tariff still remains. This situation highlights the urgency for Taiwan to finalize a Taiwan US trade deal before the grace period ends, avoiding heavier tariffs on its exports.
Moreover, the discussions between Taiwan and the US could set an important precedent for future trade relations in the region. With increasing global economic uncertainty, both sides see value in strengthening investment ties. Taiwan’s government is actively pushing for a deal that ensures stable and fair access to the US market.
In conclusion, Taiwan aims to complete a Taiwan US trade deal soon to prevent costly tariffs and boost economic cooperation. As negotiations continue and political pressure rises, the coming days will prove critical for both countries. The final agreement will likely influence trade policies and bilateral relations for years to come.
