Taiwan wraps up first major tariff negotiations with US

Taiwan said on Saturday it had finished its first round of real tariff negotiations with the United States, ending days of talks that took place in Washington and focused on taxes, trade barriers, and other sticky issues that both governments have kept on hold for too long.

The negotiations ended Thursday. The statement from Taiwan’s Office of Trade Negotiations described the discussions as “frank and cordial,” with both sides agreeing to keep talking.

The island, known for building chips and selling more to the US than it buys, was about to be hit with a 32% import tax from the Trump administration. But last month, President Donald Trump paused all his “reciprocal tariffs” for 90 days.

That decision gave Taiwan some breathing room. During that window, Taiwan offered to lift all tariffs and start buying more US goods while also boosting investments across key sectors.

Both sides plan to continue talks after Washington meetings

The talks, which Taiwan called “substantive,” didn’t include a full list of who sat at the table on the American side, but both governments want to keep the momentum going.

The trade office said both countries were “actively seeking consensus” and want to “explore further steps” that would strengthen their economic relationship. The island wants more stability with the United States as pressure from China builds.

The US has no formal diplomatic ties with Taiwan, but acts like an ally. It supplies weapons, gives support, and responds quickly whenever Beijing turns up the heat. On April 2nd, the US State Department said America would keep standing by Taiwan even as China continued massive military drills along the coast.

“In the face of China’s intimidation tactics and destabilizing behavior, the United States’ enduring commitment to our allies and partner, including Taiwan, continues,” said Tammy Bruce, a State Department spokesperson.

The same day, the department accused China of stoking tension in the region.

“China’s aggressive military activities and rhetoric toward Taiwan only serve to exacerbate tensions and put the region’s security and the world’s prosperity at risk,” the department said.

The department also warned that the US was “against any unilateral changes to the status quo, including through force or coercion.”

China holds drills while Taiwan ramps up defense and trade

China’s military admitted it had been running blockade drills and target assaults, saying it was testing joint combat systems. Military experts say that’s just Beijing showing Taiwan what it’s capable of.

David Silbey, a military historian at Cornell University, said the exercises were part of China’s long-term strategy to prepare for war with Taiwan, if it comes to that. He said the drills also act as a warning, aimed at making Taiwanese people feel surrounded.

Taiwan’s president Lai Ching-te didn’t stay silent. Last month, he called China “foreign hostile forces” and rolled out a new set of laws and economic tools to stop Chinese infiltration in the island’s institutions. His words didn’t go unnoticed. But instead of an instant reply, Beijing held off on reacting.

Analysts at Eurasia Group believe that the delay had nothing to do with diplomacy. They said China wanted to finish its two-week business summit in Beijing, where Chinese officials were hosting foreign CEOs. Doing military drills while executives were in town would have scared off investment.

Once the summit ended, the People’s Liberation Army went back to its routine. That shift didn’t go unnoticed either. Eurasia analysts warned that China is less interested in cooling things down, and the chances of a real crisis this year between China and Taiwan are going up.

China still says Taiwan belongs to it. That claim has been around for decades. Taiwan disagrees and continues to function as its own government. China, though, keeps repeating that it will take back the island by any means necessary, including and especially using military force.

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