U.S. sets 20% tariff on Taiwan goods (update)

Washington, July 31 (CNA) Taiwanese exports to the United States will be subject to a 20 percent tariff starting Aug. 7, according to an executive order signed by U.S. President Donald Trump Thursday.

The 20 percent levy matches those applied to Vietnam, Sri Lanka and Bangladesh. It is higher than the 15 percent rate for Japan, South Korea and the European Union, and the 19 percent rate for the Philippines.

● Taiwan says negotiations with U.S. to lower 20% tariff still ongoing

The announcement came one day before the Aug. 1 deadline for countries to reach agreements with the United States on tariff reductions.

Trump's tariff plan was initially unveiled on April 2 as part of a sweeping package that included a proposed 32 percent duty on goods from Taiwan.

Implementation was first delayed by 90 days, moving the deadline to July 9, and later extended to Aug. 1 to give Washington's trading partners time to negotiate a lower tariff.

According to the White House, countries that have reached "meaningful" trade and security agreements with the U.S. include the EU, Japan, the United Kingdom, South Korea, the Philippines, Indonesia and Vietnam -- but not Taiwan.

"Some countries, through negotiations, have offered terms that, in the President's judgment, do not sufficiently address the national emergency he declared on April 2," the White House said in a statement.

Among the countries that have reached agreements with the U.S., Japan and South Korea have seen their tariffs reduced from 25 percent to 15 percent, the White House said.

As part of the deals, Tokyo agreed to invest US$550 billion and Seoul US$350 billion in the U.S. market.

The EU, meanwhile, has agreed to purchase US$750 billion in U.S. energy and invest an additional US$600 billion in the U.S. market by 2028, while accepting a 15 percent tariff, the White House said.

The White House said some trading partners that are close to reaching an agreement with the U.S. will still be subject to the tariffs until a formal deal is finalized.

In Taipei, the Cabinet said Thursday that Taiwan has completed "technical consultations" on tariffs and other trade issues with the U.S., following four rounds of negotiations in Washington led by Vice Premier Cheng Li-chiun (鄭麗君).

Cabinet spokesperson Michelle Lee (李慧芝) said that the government's stance in the talks was to "protect national and industrial interests, and ensure food security and public health."