For the first time, Taiwan and the United States held talks on tariffs through a video conference on Friday. This meeting happened because of the tariff policy started by former US President Donald Trump. Taiwan is unhappy because the US has imposed a 32% tariff on some of its products, especially from its important semiconductor industry.

What Was Discussed in the Meeting?

An official from Taiwan’s Trade Negotiations Office told Reuters (without revealing their name) that both sides spoke about several economic and trade issues, including reciprocal tariffs (equal tariff benefits for both countries). Both Taiwan and the US agreed to continue these discussions in the future to build strong and stable economic relations.

Taiwan Wants a Free Trade Agreement

On Wednesday, US President Donald Trump gave 75 countries, including India, a 90-day relief from tariffs but placed a very high 125% tariff on China.
Even though Taiwan and the US don’t have official diplomatic relations, Taiwan has long wanted a Free Trade Agreement (FTA) with the US. Taiwan is home to TSMC, the world’s largest contract chipmaker, and this makes their trade ties with America very important.

Tension Between Taiwan and China

At the same time, Taiwan is also buying large amounts of weapons from the US to protect itself from possible threats from China. China claims Taiwan as its own territory, but Taiwan insists that its future will be decided only by its own people.

Both sides seem ready to hold more talks soon, hoping for better trade cooperation in the future.