Vice Premier reaffirms Taiwan's comparative advantages and most preferential treatment under bilateral trade deal following US tariff policy developments

Vice Premier Cheng Li-chiun, alongside Minister without Portfolio Yang Jen-ni and the heads of relevant ministries and agencies, convened a press conference on Tuesday to address the latest developments in U.S. tariff policy. Vice Premier Cheng stressed that the government remains committed to its core objectives, and that changes in U.S. tariff policy will not deter Taiwan from continuing active dialogue with the U.S., building on the preferential treatment achieved through the Taiwan-U.S. Agreement on Reciprocal Trade (ART). These efforts will ensure that Taiwan's industries maintain their comparative advantages and receive most preferential treatment, thereby maximizing national and industrial interests.

Vice Premier Cheng noted that the U.S. Supreme Court's February 20 ruling primarily targeted the U.S. government's invocation of the International Emergency Economic Powers Act (IEEPA) to impose reciprocal tariffs globally, with the court finding that such action exceeded statutory authority and was therefore invalid. She emphasized that the ruling has no bearing on Section 232 of the Trade Expansion Act of 1962, and that the Taiwan-U.S. Memorandum of Understanding (MOU) on investment and Taiwan's most-favored-nation (MFN) treatment under Section 232 are therefore unaffected. Furthermore, most preferential treatment has already been secured for semiconductors and their derivative products, with further details to be announced in due course. Regarding new Section 232 investigations that could arise from the ruling, the vice premier said that the MOU explicitly includes provisions allowing Taiwan and the U.S. to continue negotiating preferential treatment for items under Section 232 investigations, substantially mitigating uncertainty for affected industries.

The vice premier said that, moving forward, Taiwan will proactively engage with the U.S. to ensure that its comparative advantages and most preferential treatment are secured. Once confirmed, the ART, the investment MOU and a comprehensive impact assessment will be submitted to the Legislative Yuan.

Vice Premier Cheng reiterated that Taiwan has already reached an agreement with the U.S. and obtained preferential treatment. This provides a strong foundation for responding to subsequent shifts in U.S. tariff policy. As the U.S. recalibrates its tariff policy instruments-whether through Section 301 of the U.S. Trade Act of 1974 or other legal mechanisms-Taiwan will continue to monitor developments closely.

The vice premier added that the Taiwan-U.S. ART and investment MOU already provide terms for most preferential treatment. Taiwan's treatment under the investment MOU is expected to remain unchanged despite recent developments. However, with respect to the ART, the government will actively communicate with the U.S. on the basis of the existing preferential terms to ensure that Taiwan's industries continue to enjoy comparative advantages and most preferential treatment amid future U.S. policy adjustments. This will be the key focus of the government's near-term efforts, she said.