TAIPEI (Taiwan News) – If pressure from the Trump administration leads to Taiwan cutting its tariffs on imported cars from 17.5% to 0%, the new rate will only apply to vehicles imported from the US, the Ministry of Economic Affairs said Friday.

Negotiations between the two countries about new tariff rates were expected to continue and close before August 1, Vice Premier Cheng Li-chiun (鄭麗君) said after her return from the US last week. The Trump administration announced a 32% tariff in April on imports from Taiwan before initiating a 90-day discussion period while a basic 10% tariff applied.

Mercedes-Benz Taiwan called on the government to provide European cars with a fair and open market, and not only favor imports from the US, per UDN. The company’s main German luxury car rival, BMW AG, manufactures SUVs at a plant in Spartanburg, South Carolina.

However, Deputy Economics Minister Ho Chin-tsang (何晉滄) said that an agreement about tariffs would only be bilateral, and cover only trade between Taiwan and the US without affecting imports from other countries. He said that if Mercedes-Benz manufactured cars in the US and exported them to Taiwan, they would be covered by the tariffs valid for imports from the US.