FX.co ★ Taiwan Pursues Strategic Tech Pact with U.S. Amid Tariff Talks

Taiwan is actively pursuing a strategic high-tech partnership with the United States, intending to enhance bilateral investments and work towards reducing the 20% tariff on its exports. Leading the initiative is Vice Premier Cheng Li-chiun, who expressed optimism on Thursday about the potential for reaching an agreement through a "Taiwan model." This model emphasizes expanding U.S. production capabilities without relocating existing supply chains. Cheng characterized the model as one revolving around "industrial investment planning," backed by export credit guarantees and the joint development of industrial clusters. She also addressed claims about a proposed 50-50 chip production initiative by U.S. Commerce Secretary Howard Lutnick, clarifying that such a proposal "is not something Taiwan would agree to" and that it was never part of the negotiations.