TAIPEI (Taiwan News) — Following the announcement of a provisional 20% tariff rate on Taiwan’s exports to the US, the American Chamber of Commerce (AmCham) in Taiwan shared a statement on the current situation.
AmCham emphasized that the rate is provisional and that said that “efforts are underway to secure a lower final rate.” Given Taiwan’s crucial role in high-tech manufacturing, the chamber urged Taiwan and US to maintain close communication to avoid disruptions that may damage business confidence, per a press release.
AmCham Taiwan President Carl Wegner said that the current moment is “pivotal” for economic relations between Taiwan and the US. “The strength of our trade relationship lies not just in market access, but in our shared commitment to innovation, transparency, and partnership."
Wegner said that AmCham will support ongoing dialogue between Taipei and Washington. The chamber also seeks to reassure businesses and members that they will be prepared “to navigate this period of adjustment.”
AmCham Taiwan Chair Dan Silver said businesses on both sides want “predictability and a stable environment in which to operate.” He said the economic relationship between the US and Taiwan is “at its best when barriers are removed.”
In the short term, the new tariffs, which are set to go into effect on Aug. 7, will raise costs for exports, which in turn will likely affect pricing, investments, and production strategies. The businesses that will be impacted the most are those involved in the manufacture of machine tools, plastics, electronics, molds, and hand tools.
Some firms are already considering establishing manufacturing bases in the US or shifting exports to other regions, per the press release.
As negations continue, AmCham expressed gratitude to both the Taiwanese and US negotiating teams for their efforts to strengthen bilateral ties and develop a mutually beneficial trade relationship.
