Latest News Summary on August 1, 2025

U.S. Imposes 20% Temporary Tariff on Taiwanese Exports

U.S. Temporary 20% Tariff on Taiwanese Goods
Signed by President Trump, the executive order will take effect on August 7, imposing a 20% reciprocal tariff on Taiwanese goods.

President Lai Ching-te: The Rate is “Temporary” and Negotiations for Reduction Continue
President Lai emphasized that the 20% rate is not the final target. Negotiations are ongoing with hopes of securing a lower rate, especially for key industries such as semiconductors, electronics, and ICT. U.S. officials also confirmed that Taiwan’s negotiation proposal has received positive feedback and that talks are nearing completion.

Why Not a Higher Rate? Market and Policy Context
The 20% rate is lower than the previously threatened 32%, but higher than the 15% agreed upon by Japan, South Korea, and the EU. The Chung-Hua Institution for Economic Research estimated that Taiwan’s final tariff rate may fall between 15% and 20%, with bargaining chips including market access and U.S. investment projects.

Market Reaction: Minor Fluctuations in Stock and Forex Markets
Taiwan’s stock market opened lower but stabilized. In the foreign exchange market, the New Taiwan Dollar briefly depreciated past the NT$30 per U.S. dollar mark due to a stronger U.S. dollar, closing at NT$30.025, its weakest level in over two months.

🔍 Key Takeaways