TAIPEI (Taiwan News) — Vice Premier Cheng Li-chiun (鄭麗君) on Wednesday dismissed speculation that Taiwan had agreed to a “50-50" split with the US on chip production.
Cheng recently traveled to the US for negotiations on tariffs and returned to Taiwan early Wednesday morning, per CNA. She said the team’s main focus in Washington was to push for a reduction in tariffs without additional rates.
The team also sought preferential treatment under Section 232, a US law allowing tariffs on imports deemed a national security risk. Cheng said there were concrete discussions with the Office of the US Trade Representative and the Department of Commerce, and some progress was made.
She explained that Taiwan-US supply chain cooperation remains under negotiation, while the scope of items under Section 232 continues to expand. Cheng said she hopes for more comprehensive talks on preferential treatment under the law, adding that consultations will continue based on national and industrial interests.
Once both sides reach consensus on tariffs, Section 232 preferences, and supply chain cooperation, a concluding meeting will be held to finalize a Taiwan-US trade agreement.
Addressing public concern about the chip split, Cheng said, “I think this is an idea from the US side. Our negotiating team has never made a 50-50 commitment on chips. Please rest assured that we did not discuss this issue this time, and we will not agree to such a condition.”
Currently, Taiwan’s provisional tariff rate stands at 20%. Negotiations began with a virtual meeting on April 11, followed by in-person rounds on May 1, June 25, July 8, and from late July to early August.
