Taiwan and the United States have reached four core understandings in ongoing trade negotiations, including an agreement to cap reciprocal tariff rates at 15 percent without cumulative tariffs, according to Wu Cheng-wen (吳誠文), Minister of Taiwan's National Science and Technology Council (NSTC).
Wu disclosed the details on February 4 while speaking at the year-end banquet of the Monte Jade Science and Technology Association of Taiwan, where he represented Vice Premier Cheng Li-chun (鄭麗君). His remarks marked the most detailed public account to date of the progress made in the bilateral talks.
Wu said Taiwan's central role in global semiconductor and advanced manufacturing remains its most important source of leverage in negotiations with Washington.
Four pillars of consensus
- Reciprocal tariff cap: A commitment to cap reciprocal tariffs at 15 percent, without additional cumulative levies, providing greater cost certainty for manufacturers.
- Preferential treatment for semiconductors: Most-favored treatment for semiconductors and related derivative products.
- Supply chain investment cooperation: Expanded bilateral cooperation and investment across global supply chains.
- AI strategic partnership: Deeper Taiwan–U.S. collaboration in artificial intelligence development and related technologies.
Wu stressed that the negotiations should not be viewed as simple numerical bargaining. “This is not a discussion driven by numbers alone,” he said, describing the process as a strategic dialogue based on mutual benefit.
Taiwan's manufacturing leverage
Wu was explicit about why the United States has approached the talks with caution and respect. Taiwan currently accounts for more than 90 percent of global manufacturing capacity in advanced semiconductors and AI-related hardware.
“The United States understands that Taiwan's industries cannot relocate overnight,” Wu said. He added that the substance of the negotiations lies in how to make Taiwan more secure, noting that Taiwan's stability is a prerequisite for sustaining U.S. industrial strength.
“National team” strategy for overseas investment
To address legal, tax, and visa challenges faced by Taiwanese firms—particularly small and medium-sized enterprises—seeking to invest in the United States, Wu said the government is pursuing a coordinated “national team” strategy rather than leaving companies to navigate these barriers on their own.
Under the approach, major electronics manufacturers will serve as lead investors, while the government engages directly with U.S. authorities to resolve issues such as double taxation and to help identify more investment-friendly environments.
Wu also noted that the Executive Yuan has earmarked approximately US$17 billion in special budget funding to reinforce Taiwan’s domestic economic resilience. Of this total, around US$2.4 billion is allocated to industrial support, while US$4.5 billion is designated for strengthening civilian and national security resilience.
“The highest good is like water”
In his remarks at the event, Monte Jade Chairman Tung Tzu-hsien (童子賢) described Taiwan's negotiation approach using the phrase “the highest good is like water,” emphasizing flexibility, adaptability, and a service-oriented role in the global economy.
“This was not an easy outcome to achieve,” Tung said, adding that the results should be viewed with cautious optimism.
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