Taipei: The 10 percent tariff rate on specific Taiwanese products, set to be implemented by the Office of the United States Trade Representative (USTR) on Friday (U.S. time), is not yet finalized, according to Vice Premier Cheng Li-chiun. The final rate will hinge on the outcome of a separate investigation into Taiwan's alleged structural excess capacity and production within its manufacturing sector.
According to Focus Taiwan, the USTR initiated an investigation in March to examine excess capacity and production, along with another inquiry into whether 60 economies have prohibited imports of goods produced with forced labor, under Section 301 of the Trade Act. These investigations aim to assess if U.S. trading partners are engaging in acts, policies, or practices that are considered unreasonable or discriminatory, potentially burdening or restricting U.S. commerce.
"After the two investigations have been completed, the final tariff rate will be subject to a final determination by the U.S. side," stated Cheng, who leads the Cabinet's Taiwan-U.S. Economic and Trade Task Force. Cheng also noted that the USTR's recent announcement acknowledged Taiwan's adherence to the Taiwan-U.S. Agreement on Reciprocal Trade, which includes a commitment to ban imports of goods produced with forced labor.
Taiwan, alongside the European Union, is among the 60 economies under scrutiny, receiving a 10 percent tariff rate that was not added to their existing Most Favored Nation tariffs, thereby granting them the most favorable treatment in this context.