With anxieties rising over Taiwan's tariff negotiation progress, U.S. Commerce Secretary Howard Lutnick and Cabinet Spokesperson Michelle Li (李慧芝) announced a deal that seems close at hand.

In July, the Trump Administration adjusted Taiwan's reciprocal tariff rate to 20%, in lieu of having not yet come to a trade deal. This was in addition to existing most favored nation (MFN) rates and anti-dumping or countervailing duties on exports. This stoked fears that Taiwan would be outmatched by economic competitors South Korea and Japan, who either have already or are in the final stages of negotiating a 15% tariff rate.

However, in an interview with CNBC on Thursday, Lutnick outlined his meetings with commerce ministers from Taiwan and others. Lutnick hinted a deal was close, saying, “We've got a big deal coming with Taiwan.”

Taiwanese companies are bracing for the impact of Trump's tariff plan, especially if the semiconductor industry receives additional tariffs. This despite the fact that Taiwan's trade deficit with the U.S. has reached a record high due to chip demand for AI.

Li seemed to back up Lutnick's claims, acknowledging negotiations have made substantial progress, pending a final review meeting with the U.S. side. She says, due to the impact temporary tariff measures have already had on Taiwanese industries, Taiwan hopes to reach a more reasonable deal soon and is pushing for preferential tariff treatment. She also notes the special assistance budget proposed by the Cabinet on Thursday to help alleviate urgent needs for affected industries, workers, and farmers.