The global trade environment has grown increasingly complex over the past year, as shifting industrial policies and rising geopolitical tensions reshape economic strategies worldwide. For Taiwan, which relies heavily on exports, this environment presents both challenges and opportunities.

Led by Vice Premier Cheng Li-Chiun, the negotiation team for talks with the United States — comprising the Office of Trade Negotiations (OTN) under chief trade representative Yang Jen-ni, along with a group of ministers, and the National Security Council — has responded with a pragmatic strategy aimed at maintaining Taiwan’s competitiveness and deepening its trade partnership with the United States.

“This year has been full of challenges,” says Yang. “But every hardship brings opportunity. We believe both sides can use this negotiation process not only to balance trade but also to build a deeper, strategic high-tech partnership.”

Following the “America First” trade and investment policies introduced by the U.S. administration in early 2025, Washington announced reciprocal tariffs and began negotiations with trading partners, including Taiwan. The move came as semiconductors, information and communications technology products, and electronic components — accounting for more than 90% of Taiwan’s trade surplus with the United States — became the focus of a Section 232 investigation. Though these developments have made tariff discussions more complex, OTN views the talks as an essential opportunity to strengthen long-term cooperation.

Taiwan’s negotiating approach follows President Lai Ching-te’s overall strategy of being “rooted in Taiwan, deploying globally, and marketing across the world.” In practice, this means balancing Taiwan’s domestic resilience with its outward economic engagement.

The talks with the United States cover five major areas: tariffs, non-tariff barriers, trade facilitation, economic security, and business opportunities. Tariff talks aim to benefit Taiwan by addressing its reliance on imported raw materials and the need to lower duties to reduce industrial costs. Meanwhile, efforts to tackle domestic non-tariff barriers by promoting science-based, internationally recognized standards will also help Taiwanese products access global markets more efficiently.

“We prioritize public health and scientific evidence while ensuring our industries can remain globally competitive,” says Yang.

Trade facilitation remains a key element of bilateral discussions in which both sides aim to simplify customs and enhance transparency to create a predictable trade environment.

On economic security, Taiwan and the United States share a common goal: to ensure supply-chain resilience and prevent unfair trade practices. The two sides are working together to combat origin fraud, strengthen export controls and investment reviews, and build a “non-red” supply chain that guarantees trust and resilience among democratic partners.

“Taiwan is fully committed to cooperating with the United States and like-minded countries to create secure, democratic, and transparent supply chains,” she says.

Taiwan’s industries excel in semiconductor manufacturing, AI servers, and ICT hardware, while the United States leads in R&D, innovation, and market development. “By combining our strengths, we can achieve mutual growth and shared prosperity,” says Yang.

“We also encourage U.S. companies to invest in Taiwan’s five trusted sectors identified by President Lai: semiconductors, AI, defense, security and surveillance, and next-generation communications,” she says.

Technical consultations on reciprocal trade negotiations are now nearly complete, and discussions on supply-chain cooperation are underway. Taiwan sees this as a crucial step toward aligning industrial strategies and creating a foundation for joint innovation.

“It’s our duty to help Taiwanese companies connect capital, talent, and technology, and to build innovative, democratic supply chains with trusted partners,” says Yang.

To support this effort, Taiwan proposed an investment plan tailored to its own industrial strengths and economic development. The plan is designed to support Taiwanese companies in expanding their footprint in the United States while maintaining their roots at home. It includes government-backed credit guarantees to help businesses expand abroad and promotes government-to-government cooperation to develop industrial clusters which will help to further lower costs and risks for investors.

Once both sides reach a consensus on supply-chain cooperation, Taiwan hopes the United States will further lower the current provisional reciprocal tariff rate of 20% without stacking with most-favored-nation rates and offer Taiwan the most preferential treatment for those products subject to the Section 232.

“We believe that lowering the reciprocal rate and providing preferential treatment for Taiwan’s high-tech exports under Section 232 would empower our companies to invest in the U.S., contributing directly to America’s reindustrialization goals,” says Yang.

Another major priority is addressing the issue of double taxation on corporate and personal income. Taiwan calls for the swift finalization of the Avoiding Double Taxation Agreement, which was approved by the U.S. House earlier this year and awaits Senate action.

“Once the legislation is passed, I am confident that the finance ministries of both sides will quickly finalize the details,” says Yang. “This will greatly facilitate cross-border investment and economic collaboration.”

The broader context of Taiwan-U.S. cooperation reflects a shared vision of strategic complementarity. Taiwan’s manufacturing and engineering strengths are matched by U.S. leadership in research, innovation, and market access. Yang notes that Taiwan and the United States share complementary strengths that extend naturally into AI cooperation.

“As President Trump pushes to make America the global leader in AI, Taiwan stands ready to be its most trusted and strategically valuable high-tech partner,” says Yang. “Together, we can ensure that the democratic world stays ahead in technology, thrives economically, and remains regionally peaceful and stable,” she says.