After Trump tariff ruling, KMT calls to renegotiate U.S. trade deal

Taipei, Feb. 21 (CNA) The opposition Kuomintang (KMT) on Saturday urged Taiwan's government to renegotiate the Agreement on Reciprocal Trade (ART) it signed with Washington earlier this month, after the U.S. Supreme Court struck down sweeping tariffs imposed by President Donald Trump.

In a decision issued Friday (U.S. time), the Supreme Court ruled that Trump had exceeded his authority when he imposed tariffs against a wide range of countries using a law reserved for national emergencies.

The decision by a 6-3 majority on the court also cast uncertainty on several deals the U.S. has signed with individual nations, including the ART deal with Taiwan, that offered relief on tariffs imposed under the emergency law in return for investment or various trade benefits.

Adding to the uncertainty, shortly after the ruling, Trump announced that he would impose a temporary 10 percent global tariff under authority granted by a separate law.

• EXPLAINER / 5 things to know about the Taiwan-U.S. trade deal

The U.S. trade representative also said Washington would open trade investigations against "most major trading partners," which could be used as grounds for imposing new tariffs.

Following the court's ruling, the KMT -- one of two opposition parties that hold a combined majority in Taiwan's Legislative Yuan, which still has to review the ART -- called on the government to urgently clarify whether the agreement "is still valid."

In a statement, the KMT noted that Taiwan had committed to make significant investments in the United States in return for the U.S. lowering tariffs on most Taiwanese goods from 20 percent to 15 percent.

Given that "the basis for those investments has been shaken," the government should strive to "restart negotiations" in order to safeguard Taiwan's economic interests, the party said.

The KMT also urged the government to calculate what tariff rate Taiwan is likely to face from the U.S. following the court's ruling, in order to assess the impact on Taiwanese industries and determine whether government assistance will be required.

• Impact of Trump's 10% tariff on Taiwan 'limited': Executive Yuan

Meanwhile, Huang Kuo-chang (黃國昌), chairman of the smaller opposition Taiwan People's Party (TPP), said the government should use the "opportunity" presented by the court's ruling to "readjust" portions of the agreement, with an eye to better protecting Taiwan's industries, workers and farmers.

ART deal terms

Under the ART, which was signed on Feb. 13 (Taiwan time) but has yet to take effect, Taiwan agreed to waive or lower tariffs on a range of products from the U.S., including automobiles, various agricultural products, pork, beef, and health supplements.

It also referred to a previous deal which committed Taiwanese enterprises to invest US$250 billion in the U.S. and the government to provide credit guarantees to facilitate up to US$250 billion in additional investment.

In return, the U.S. agreed to lower tariffs on most Taiwanese goods from 20 percent to 15 percent, and to waive tariffs on over 1,800 Taiwanese industrial products.