Trade Win or Industrial Risk? Taiwan US Trade Deal 15% Tariff Sparks Debate

It's a victory on paper, but critics say the price is too high. Taiwan's government just unveiled details of a new trade pact with the United States, yet opposition parties aren't celebrating, warning that long-term costs could outweigh the immediate benefits.

Analyzing the Taiwan US Trade Deal 15% Tariff Win

The cabinet released further details on Tuesday regarding the agreement, which secures a 15% reciprocal tariff rate for the island. This rate is a step down from the previously proposed 20% and aligns Taiwan with trade partners like Japan. While officials are framing this as a significant diplomatic and economic achievement, the internal political rift is widening.

Long-term Industrial Risks and Costs

Opposition leaders argue that the deal focuses too heavily on short-term tariff reductions while ignoring potential damage to the island's industrial base. They're concerned that the concessions made to the U.S. might lead to increased operational costs and a loss of competitive autonomy in the global market. There's a growing fear that Taiwan's economy could become overly subservient to American industrial policy.