Taiwan signals cautious optimism after avoiding US tariff letter

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Officials in Taipei are particularly eager to secure a deal with the Trump administration.

PHOTO: REUTERS

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 favorable 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 was one of the relatively few parties that has been 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 an extra 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