Taiwan signals cautious optimism after avoiding US tariff letter

TAIWAN – Taiwan indicated it was cautiously optimistic about talks with the US after it avoided getting a letter from the Trump administration notifying trading partners of new tariff rates.

It would have been more favourable not to receive one of the missives, and getting one suggests a more difficult position in the talks, said a national security official in Taipei, who asked not to be identified discussing the sensitive matter.

Taiwan is one of the relatively few parties making steady progress in its negotiations with the US, the official added on July 8. Still, the official said a final verdict on the talks would have to wait until the two sides produced concrete results.

US President Donald Trump sent letters to 14 trading partners with the new rates on July 7 before what had been a deadline this week for them to conclude negotiations. The notes also delayed the increased duties until Aug 1.

US Commerce Secretary Howard Lutnick, speaking to CNBC on July 8, said he expected another 15 to 20 letters to be released in the coming two days.

Officials in Taipei are particularly eager to secure a deal with the Trump administration, both to maintain economic growth and to ensure their military backing from the US remains in place as China ramps up its threats to the democracy of 23 million people.

In June, Taiwan said it was making “constructive progress” in a second round of talks with the US, and officials from Taipei were in Washington this week for a third session.

Taiwan President Lai Ching-te has expressed willingness to increase imports from the US, including energy, agricultural and military goods, to lower the trade imbalance.

His government’s bid to diversify Taiwan’s economic ties away from China and embrace the US has led to a trade surplus with the US in the first half of 2025, exceeding its combined figure for Chinese and Hong Kong markets. BLOOMBERG