TAIPEI (Taiwan News) — Taiwan may see its 32% tariff rate cut to 10%, but critical industries are bracing for tough US demands, Hudson Institute Senior Fellow Riley Walters said Monday.

On April 2, US President Donald Trump announced a flat 10% tariff on all imports and punitive tariffs of up to 50% for selected countries, including 32% for Taiwan. Higher rates have been delayed for 90 days, giving countries a window to negotiate.

Walters said the Trump administration expects all countries to accept higher tariffs, but there is negotiating room for Taiwan, per CNA. “I’m not sure it will go lower than 10%, but it probably won’t stay at 32%,” he said, adding that the Trump administration appears open to negotiation.

Walters warned that any deal could hinge on sensitive issues, like US pork and beef imports, which have been flashpoints in Taiwan’s domestic politics. He said he believes the Trump administration aims to buy time for US companies to diversify supply chains away from China.

Meanwhile, Yun Sun, director of the China program at the Stimson Center, noted that talks with Taiwan may mirror US negotiations with other allies, covering tariffs and investment access in key sectors, CNA reported. She cautioned that Taiwan’s highly competitive, export-led industries may face growing pressure as trade talks deepen.

Taiwan’s first round of in-person trade talks with the US wrapped up on May 1, following an earlier virtual meeting on April 11. Vice Premier Cheng Li-chun (鄭麗君) and chief trade negotiator Yang Jen-ni (楊珍妮) are leading Taiwan’s effort.