TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) said Friday the US’ 20% tariff on Taiwan is “provisional” as negotiations continue, and he is directing the Cabinet to provide relief to businesses affected. 

Lai said that since the US introduced new global tariff measures on April 2, Taiwan has engaged in four rounds of in-person negotiations and several virtual meetings with the US. He noted the negotiations have reduced the tariff from 32% to 20%, per TVBS.  

However, he said, this was not final and Taiwan would continue working toward a more favorable rate. He commented: “Earlier today, the US government informed our negotiation representative, Vice Premier Cheng Li-chiun (鄭麗君) that Taiwan's provisional tariff rate would be 20%.”

Lai said a final meeting on the issue is yet to take place, which is why the 20% figure is provisional. He thanked Cheng, negotiator Yang Jen-ni (楊珍妮) and their team for their efforts.  

Lai acknowledged the tariff would have a significant effect on business. He praised Premier Cho Jung-tai (卓榮泰) for proposing a support plan for small and medium enterprises as early as April 4.

This plan includes consultations with domestic industries and an increase in the special budget from NT$88 billion to NT$93 billion (US$2.93 billion to US$3.1 billion). Lai urged the Cabinet to submit the budget to the Legislative Yuan for approval soon so that business relief could be provided.