In Taiwan, pressure builds over US deal as critics question true cost of tariff cut

South China Morning PostCenter-RightEN 1 min read 100% complete by Lawrence ChungJanuary 20, 2026 at 01:04 PM

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Taiwan's opposition parties are criticizing a recently formalized economic deal with the United States, specifically an investment cooperation memorandum of understanding signed on January 15th. The deal secures a 15% reciprocal tariff rate for Taiwan, a reduction from initial proposals. However, critics are questioning the true financial commitment Taiwan is making to the US, estimated between $250 billion and $500 billion. They fear this commitment could strain Taiwan's finances, harm its industrial base, and accelerate the relocation of Taiwanese industries overseas. The opposition argues that the government's explanations regarding the deal's details have been inconsistent, raising concerns about its long-term economic impact on Taiwan.

Key Entities & Roles

Key Player Opposition Context

China ×230% Iran ×230% Japan 40% South Korea 40% European Union 40% US Department of Commerce 50% Office of the US Trade Representative 50% Donald Trump ×260% United States ×380% Taiwan ×590%

Keywords

tariff cut 90% economic deal 80% taiwan 80% united states 70% reciprocal tariff rate 70% industrial base 60% trade agreement 50% financial commitment 50% investment cooperation 50% opposition parties 40%