President William Lai (賴清德) said yesterday that the Taiwan-US tariff deal, signed earlier this month, is favorable to Taiwan, adding that Japan, South Korea and other countries have not chosen to reopen negotiations under the circumstances, according to a government source.
Lai made the remarks at a Lunar New Year tea gathering with Legislative Speaker Han Kuo-yu (韓國瑜) and the heads of the four other branches of government. He expressed hope that once the Executive Yuan submits the agreement to the Legislative Yuan, it can be reviewed and approved as soon as possible, allowing businesses to finalize plans and conduct trade with certainty.
The source said that Premier Cho Jung-tai (卓榮泰) mentioned during the closed-door meeting that this year’s central government general budget, the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法), the special defense budget, and the tariff agreement would all require Han’s assistance in advancing them through the legislature.
Photo courtesy of the Presidential Office
Cho responded that the details are still being compiled, and Han inquired about the possibility of delivering a report to the Legislative Yuan Monday next week and expressed his willingness to help coordinate the process, the source added.
Cho said separately yesterday that Taiwan aims to safeguard the most favored nation terms of a trade deal it signed with the US amid changes in its tariff policy announced on Friday last week.
The Executive Yuan held a seven-hour meeting on Saturday to assess the impact of a US Supreme Court ruling that invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA), Cho said.
Cho cited the Taiwan-US investment memorandum of understanding and most favored nation treatment for high-tech goods under Section 232 of the US Trade Expansion Act — both part of the overall bilateral agreement — as terms Taiwan wanted to protect.
“This foundation must be safeguarded, and we must immediately confirm this with the US,” Cho said, adding that Taipei is in touch with Washington to clarify legal procedures and possible follow-up actions.
The US imposed a 20 percent import duty on goods from Taiwan on July 31 lsat year as part of US President Donald Trump’s widespread “reciprocal” tariffs levied using IEEPA authority.
Trade negotiations ensued, and the US agreed to bring the tariff down to 15 percent, the same level as imposed on Japan and South Korea, and to provide most favored nation treatment for high-tech goods under Section 232, which can penalize specific categories of imported goods for national security reasons.
In exchange, Taiwan committed to direct investment of US$250 billion in the US by Taiwanese companies, and the reduction or elimination of tariff and non-tariff barriers to US products.
Even while the US Supreme Court decision was pending, Taiwan and the US signed the trade deal on Feb. 12, but it has not yet been ratified by the Legislative Yuan.
On Friday, the US Supreme Court ruled that the IEEPA does not authorize the US president to impose tariffs, but Trump then invoked Section 122 of the Trade Act of 1974 to impose a 15 percent global tariff while signaling possible use of Sections 301 and 232.
Roy Lee (李淳), research fellow at Taiwan’s Chung-Hua Institution for Economic Research and former representative to the EU, said the ruling has heightened uncertainty over US trade policy.
Trump’s broader goals, cutting trade deficits and attracting investment, remain unchanged, Lee said, meaning Trump could turn to other legal tools if one path is blocked.
“If law A does not work, it will switch to Laws B, C, D or E,” he said.
Lee said that Sections 122, 301 and 232 all carry limits, including time caps, investigative requirements and narrower scopes, potentially resulting in overlapping or sequential tariffs and greater uncertainty.
He said the Taiwan-US agreement signed on Feb. 12 before the court ruling gave Taiwan an edge, calling it “a fast-track entry card without having to queue” as more countries seek talks with Washington.
The Section 232 component in the deal is not directly affected by the ruling and should be fully defended, Lee said, while the reciprocal tariff arrangement faces greater future uncertainty after the earlier duties were struck down.
Executive Yuan spokeswoman Michelle Lee (李慧芝) said on Sunday that the government would continue to monitor the Trump administration’s corresponding measures and carefully assess follow-up responses, including “whether the reciprocal trade agreement will be submitted to the legislature for review.”
The opposition-controlled legislature must approve the trade deal for it to be carried out, and opposition lawmakers have suggested it be renegotiated after the tariff at the heart of the agreement was found to be unconstitutional by the US Supreme Court.
Additional reporting by Chen Yun
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