In Taiwan, pressure builds over US deal as critics question true cost of tariff cut
Debate centres on Taiwan’s financial commitment to the US – whether US$250 billion or US$500 billion – and if it will harm the economy
The rate is down from a previously proposed 20 per cent and broadly in line with Japan, South Korea and the European Union, and marks a sharp reduction from the 32 per cent tariff initially floated last April by US President Donald Trump.
The arrangement was formalised through an investment cooperation memorandum of understanding (MOU) signed with the US Department of Commerce on January 15, with a separate reciprocal trade agreement expected to be concluded with the Office of the US Trade Representative in the coming weeks.
At the centre of the debate is the true scale of Taiwan’s financial commitment to the US – whether it totals US$250 billion or US$500 billion – and how much of that exposure will squeeze financing on the island and ultimately hurt its interests.
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Opposition figures have argued that government explanations have been inconsistent and that the deal risks accelerating the relocation of Taiwan’s industrial capacity and supply chains overseas.