TAIPEI (Taiwan News) — Chung-Hua Institution for Economic Research President Lien Hsien-ming (連賢明) said Wednesday that Taiwan emerged with favorable terms from its tariff negotiations with the US.
In a Facebook post, Lien analyzed the agreement across six areas, ranging from tariffs to investments. He concluded that Taiwan’s commitments are acceptable while overall conditions are positive, per CNA.
On tariff rates, Lien said Taiwan secured a flat 15% rate without stacking, matching Japan and South Korea. Countries that obtained lower rates generally run trade deficits with the US or have small trade volumes, he said.
Taiwan committed NT$7.83 trillion (US$250 billion) in private direct investment and up to NT$7.83 trillion in government credit guarantees. Lien said that when measured against Taiwan’s trade surplus with the US, the investment could be offset in about two years, less than Japan, South Korea, or Switzerland.
In terms of government responsibility, Lien said Taiwan’s burden is lighter than Japan and South Korea, whose governments must cover any investment shortfalls.
Lien also highlighted Taiwan’s private-led investment model, under which companies decide investment targets while the government supports infrastructure. By contrast, Japan and South Korea accepted US-designated projects, with Japan agreeing to give the US 90% of profits after breakeven.
Lien said Taiwan’s agreement sets no deadline for completing investments, unlike Japan, which must complete during US President Donald Trump’s term. He said the lack of a fixed timeline gives Taiwan flexibility, reflecting the long-term nature of semiconductor investments.
On Section 232, Lien said Taiwan secured most-favored-nation treatment, exempting semiconductor equipment and machinery used in US investments from tariffs. As long as TSMC invests in the US, Taiwan’s chip exports will remain tariff-free, he explained.
Overall, Lien said Taiwan achieved favorable outcomes while keeping investment size and government obligations at manageable levels, making the deal broadly advantageous.
