U.S.Rejects Taiwan's Request for Tariff Exemption

Taiwan is asking the U.S. for zero tariffs on aluminum and steel. Taiwan's Representative John Deng revealed that he had asked the U.S. for tariff-free treatment on products from certain companies, but the U.S. still has doubts that some Taiwan companies source their raw materials from China, and had refused his proposal . Economic Affairs Minister Shen Jong-chin says the ministry will do a count of how many companies will be affected and find a way to replace Chinese aluminum and steel. The chief representative of the Executive Yuan Office of Trade Negotiations, John Deng, recently asked the U.S. for a tariff exemption on aluminum and steel. The U.S. again said no, but Deng says he gained a better understanding of the U.S.' perspective. Economic Affairs Minister Shen Jong-chin, meanwhile, told lawmakers the U.S. is unwilling to give Taiwan a tariff exemption because most Taiwanese aluminum and steel makers rely on China for raw materials. Basically, the U.S. has misgivings about some of our manufacturers importing aluminum and steel materials from China and then exporting their products to the U.S. The Ministry of Economic Affairs says the U.S. implemented the tariff because American companies can't compete with China's steel and aluminum surplus. According to the ministry, Taiwanese companies that can prove not all of their raw materials are sourced from China or that they have the ability to use alternate raw materials may be able to get a tariff exemption. It's also possible we will become an innocent third party victim written in China Steel's report. Once it gets up to speed internally, we will try to reach a consensus with the industry. Once we reach the consensus, we will then need to negotiate with the U.S. again. The ministry says the impact of the tariff will be about US$1.3 billion for the steel industry and US$40 million for the aluminum industry. It will also conduct a survey to see how many companies will be affected and try to come up with alternatives to Chinese aluminum and steel to improve the chances of getting a tariff exemption from the U.S.