KMT calls for national conference on U.S. tariffs

Taipei, Aug. 1 (CNA) Fu Kun-chi (傅崐萁), chief convener of the main opposition Kuomintang (KMT), on Friday urged President Lai Ching-te (賴清德) to convene a national conference as soon as possible in response to the 20 percent tariff announced earlier in the day by the White House on Taiwanese goods.

Speaking at a news conference, Fu said the 20 percent tariff poses a severe challenge to Taiwan's industries, which now must compete with Japan and South Korea -- both of which benefit from a lower 15 percent tariff rate.

Eighty-five percent of Taiwan's industries are export-oriented, with most having a gross profit margin of around just 10 percent, and now face the double squeeze of an appreciating Taiwan dollar and tariffs.

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

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

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

In response, KMT mayors of four special municipalities called on the central government to negotiate a more favorable tariff rate for Taiwan.

Taichung Mayor Lu Shiow-yen (盧秀燕) said the issue poses a significant impact on Taiwan's industries and that it could also trigger ripple effects throughout the domestic economy.

Meanwhile, Taipei Mayor Chiang Wan-an (蔣萬安) said the Executive Yuan had previously stated that Taiwan's tariffs "would not be higher than those of competing countries."

The outcome has clearly proven otherwise, representing a failure on the part of the government, Chiang said.

Taoyuan Mayor Chang San-cheng (張善政) said although the 20 percent tariff is a significant drop from the initially announced 32 percent, the rate still remains challenging compared to the 15 percent imposed on competing nations like Japan and South Korea.

Chang said key details, such as how much investment Taiwan must make in the United States or whether Taiwan will be required to open its market to certain imports, still remain unclear.

Lai owes the public an explanation as to what he meant by "tentative" when he referred to the 20 percent tariff, New Taipei Mayor Hou Yu-ih (侯友宜) said.

At the Legislative Yuan, ruling Democratic Progressive Party (DPP) Legislator Wu Szu-yao (吳思瑤) said negotiations between Taiwan and the U.S. were still ongoing.

Wu advised people in all sectors to refrain from being pessimistic and instead, should rally behind Taiwan and support the country, regardless of political affiliation.

However, Taiwan People's Party (TPP) Chairman Huang Kuo-chang (黃國昌) criticized the government negotiations with the U.S. as a "black box" affair, urging President Lai to clearly explain what deals were made following the announcement of a 20 percent tariff on Taiwan.

Huang said the public deserves the right to know the details, noting that Taiwan got a higher tariff rate compared to competing nations, such as Japan and South Korea.

The TPP caucus issued a negotiation invitation this morning, inviting representatives from all parties to discuss the tariff matter at 9 a.m. on Aug. 4, he said, again urging the ruling DPP to stop shielding the government and immediately join calls for the Executive Yuan to come to the legislature to provide clear and transparent explanations.