Taiwan’s Ministry of Economic Affairs confirmed that the Taiwan-US tariff deal will impact only vehicles imported from the United States. If Taiwan lowers its current 17.5% tariff on imported cars to zero, this new rate will apply exclusively to US-made vehicles. The ministry clarified this point on Friday amid ongoing discussions between the two governments. Vice Premier Cheng Li-chiun recently returned from the US and said negotiations aim to conclude before August 1. The Trump administration imposed a 32% tariff on Taiwanese imports in April but allowed a 90-day window for talks. Before these tariffs, Taiwan applied a basic 10% rate to imports.
Meanwhile, European automakers urge Taiwan to provide a level playing field. Mercedes-Benz Taiwan, for example, requested fair treatment for European cars, not just US imports. BMW AG, a leading German luxury car manufacturer, produces SUVs at a factory in Spartanburg, South Carolina. This complicates the picture because some European brands have manufacturing operations inside the US. Deputy Economics Minister Ho Chin-tsang emphasized that any tariff agreement will be strictly bilateral. It will only cover trade between Taiwan and the US, not affecting vehicles imported from other countries. Therefore, if Mercedes-Benz cars are made in the US and exported to Taiwan, they will fall under the Taiwan-US tariff deal terms.
This distinction matters for the Taiwanese car market. Many luxury vehicles come from various global producers, and this tariff agreement will not alter tariffs on non-US imports. The government appears focused on balancing international trade demands without disrupting other partnerships. In summary, the Taiwan-US tariff deal narrows its scope to US vehicle imports. Taiwanese officials continue discussions with the US, aiming to finalize terms soon. At the same time, European manufacturers push for equal access to Taiwan’s market. The Taiwan-US tariff deal shows how complex trade negotiations can become, especially when global supply chains overlap. It remains to be seen if Taiwan will expand negotiations to include other countries’ imports. For now, the zero tariff plan applies only to American-made cars.
