Taiwan’s vice premier says the island will work with the US to ensure its agreed trade benefits remain unchanged following a Supreme Court ruling.

TAIPEI: Taiwan will work with the United States to ensure the beneficial terms of their trade agreements remain unchanged. Vice Premier Cheng Li-chiun made the statement on Tuesday following a US Supreme Court decision that struck down former President Donald Trump’s emergency tariffs.

Trump warned countries on Monday against backing away from recently negotiated trade deals. He said he would hit them with much higher duties under different trade laws.

Taiwan has struck two deals with the United States to lower tariffs on its exports. The agreements reduce the rate to 15% from 20%.

READ MORE: Trump warns trade partners of higher tariffs after court ruling

Under last month’s deal, Taiwan companies will invest USD 250 billion to boost production in the US. The investment will focus on semiconductors, energy and artificial intelligence.

Taiwan will also guarantee an additional USD 250 billion in credit to facilitate further investment. A second deal this month confirmed the tariff cut and commits Taiwan to a schedule for eliminating or lowering tariffs on nearly all US goods.

It also commits Taiwan to significantly boost purchases of US goods like natural gas. Cheng, who led the talks, said the government has already been in touch with Washington.

“I think our contacts so far have also been positive,” she told reporters. “The US side understands that this is an agreement that benefits both sides.”

Cheng was referring to last month’s Agreement on Reciprocal Trade, or ART. She added that this is not a reopening of negotiations.

Taiwan will seek to actively engage with the US to understand how its companies will continue to receive the best treatment. This effort comes as the US looks at other tariffs.

Countries that have already signed agreements with the US should have a “relatively advantageous foundation,” Cheng said. She noted this would apply when facing any future alternative tools the US might adopt through new legal avenues.

Preferential tariff treatment for Taiwan’s semiconductor exports already agreed with the US will also not change. However, Cheng added that Taiwan’s high trade surplus with the United States is a risk going forward.

 The Sun Malaysia