TAIPEI (Taiwan News) — The US has reportedly asked Taiwan to invest up to NT$17.1 trillion (US$550 billion) as a condition for a tariff deal.
In July, Taiwan was reportedly considering expanding investments in the US to between US$300 billion and US$400 billion to secure favorable tariff terms, per CNA. President Lai Ching-te (賴清德) said on Tuesday that the tariff negotiations are in their “final leg.”
The current provisional tariff rate is 20%, and Taiwan seeks both lower rates and the elimination of overlapping tariffs. Taipei is also seeking most-favored-nation status amid the Commerce Department’s ongoing Section 232 investigation into semiconductor imports.
Sources familiar with the talks told Politico that Taiwan hopes to close the agreement by the end of November. Even if the US Supreme Court overturns President Donald Trump’s tariffs, Taiwan continues to pursue a trade deal amid concerns about potential new tariffs on its globally dominant semiconductor industry.
Politico reported that the Trump administration is negotiating a provision requiring Taiwan to invest billions of dollars in the US, mirroring commitments previously made by South Korea and Japan. A source said the investment would fall “midway between South Korea’s $350 billion and Japan’s $550 billion.”
Following her visit to the US in early October, Vice Premier Cheng Li-chiun (鄭麗君) outlined Taiwan’s expanded investment plan. She described a “Taiwan model” distinct from Japan and Korea, emphasizing corporate-led planning with government financial guarantees and industry cluster development through government-to-government cooperation.
Responding to questions about the possible Supreme Court ruling, Taiwan’s representative to the US Alexander Yui (俞大㵢) said at a Nov. 8 event that the court case and the bilateral tariff talks should be viewed separately. He added that both sides hope to conclude the negotiations soon, with the outcome depending on mutual agreement.
Politico added that as the Supreme Court weighs the limits of Trump’s tariff powers, foreign governments are expected to accelerate talks with Washington. Analysts say a ruling invalidating Trump’s tariffs could weaken US negotiating leverage, giving smaller economies more room in future agreements.
An official from a small European country, speaking anonymously, said, “The door is open a peek. We intend to wedge a foot in it.” The source added that all countries still negotiating with Washington are under pressure to secure the most favorable terms compared to those who have already reached tariff-reduction agreements.
During last week’s oral arguments, Supreme Court justices questioned the legality of Trump’s use of emergency powers for reciprocal tariffs. However, even if struck down, Trump could still use other legal mechanisms, such as the 1962 Trade Expansion Act, to impose new tariffs under different authorities.
