Eric Chu Unveils U.S. Negotiation Terms: Taiwan May Need to Accept Full Tax Rates

As the U.S. prepares to announce new tariff policies, Taiwan remains absent from the initial list, raising market eyebrows. On July 7, U.S. President Donald Trump announced new tariffs affecting 14 major trade partners, with most facing rates of 25% or higher, leaving Taiwan’s status uncertain.
Financial expert Eric Chu stated on Facebook that Taiwan’s exclusion from the first wave of tariffs does not signal a dire situation but indicates ongoing negotiations. He emphasized that this is only his personal view. Additionally, foreign media reported that U.S. Treasury Secretary Scott Bessent warned Taiwan that without a trade agreement, the U.S. would revert to the previous 32% tariff rate starting August 1.
Regarding Taiwan’s negotiation progress, the Presidential Office revealed President Lai Ching-te held a video call with the negotiating team on July 7, emphasizing the need to protect national and industrial interests while striving for fair tariffs. Eric Chu remarked that Taiwan’s absence from the initial list is a positive sign, suggesting there remains room for negotiation. Ultimately, he predicts Taiwan may have to fully accept a 15% tariff; otherwise, it could face a starting rate of 25%.