Taiwan-US Trade Talks in Critical Phase, Aiming for August 1 Deadline

Taipei, Taiwan – July 12, 2025 – Negotiations between Taiwan and the United States are entering a crucial stage, with both sides working towards an agreement before an August 1 deadline. The Executive Yuan confirmed that ongoing discussions are progressing and an initial agreement has been reached for the next round of in-person consultations.

Zheng Lijun, Vice Premier of the Executive Yuan and head of Taiwan’s negotiation team, emphasized the importance of this period. “Taiwan is entering a critical phase,” Zheng stated, “and we will strive to complete negotiations before the August 1 deadline.” He further underscored Taiwan’s commitment to safeguarding national and industrial interests, as well as ensuring public health and food security.

Zheng clarified that any letter received during this process does not signify the final outcome of the negotiations. “The Taiwan-US negotiations are still in progress,” he explained. “Both sides have expressed their hope to complete the agreement before the deadline on August 1, and there will be a final result at that time.”

Does the immediate implementation of the tariffs, without a clear process for exemptions, violate the APA’s requirement for reasoned decision-making?

Trump Imposes 30% Tariffs on Europe, Mexico Over Drug Policy Concerns

The New Tariffs: A Breakdown

In a move that has sent shockwaves thru global markets, former President Donald Trump has authorized the imposition of a 30% tariff on pharmaceutical imports from Europe and Mexico, effective promptly.The stated rationale behind this aggressive trade action centers on concerns regarding unfair drug pricing practices and the perceived failure of these nations to adequately address the flow of illicit fentanyl into the United States. This decision, announced late Friday, represents a significant escalation in the ongoing battle against the opioid crisis and a dramatic shift in international trade policy.

Key Details of the Tariff Implementation

Affected Countries: The tariffs directly impact pharmaceutical imports from all member states of the European Union and Mexico.

Tariff Rate: A flat 30% tariff will be applied to the value of all covered pharmaceutical products.

Justification: The Trump management cites “grossly unfair” pricing of prescription drugs and insufficient cooperation in curbing fentanyl production and trafficking as the primary drivers for the tariffs.

Implementation Date: The tariffs are effective immediately, with customs officials instructed to begin enforcement without delay.

Potential Exemptions: Limited exemptions might potentially be considered for essential medicines facing critical shortages, but the process for applying for such exemptions remains unclear.

Increased Drug Prices: Pharmaceutical companies are likely to pass at least a portion of the tariff costs onto consumers, leading to higher prescription drug prices. This is especially concerning for life-saving medications.

supply Chain Disruptions: The tariffs could disrupt the complex global pharmaceutical supply chain,perhaps leading to shortages of certain drugs.

Reduced Access to Medications: higher prices and potential shortages could limit access to essential medications for millions of Americans, especially those with chronic conditions.

Retaliatory Measures: european and Mexican officials have already signaled their intention to explore retaliatory tariffs on U.S. exports, potentially escalating the trade war.

Impact on Innovation: reduced profitability for pharmaceutical companies could stifle investment in research and advancement of new drugs.

The Fentanyl connection & Drug Policy Concerns

the core of Trump’s argument rests on the assertion that Europe and Mexico are not doing enough to combat the fentanyl crisis. While the source of fentanyl precursors largely originates in China, the drugs are often trafficked through Mexico and, according to the administration, European chemical companies contribute to the supply chain.

Specific Concerns Highlighted by the Administration

Precursor Chemical Exports: The administration alleges that certain European chemical companies are knowingly exporting precursor chemicals used in the illicit production of fentanyl to Mexico.

Lack of Border Control: Criticism has been leveled at Mexico for insufficient border security measures allowing fentanyl to enter the United States.

Drug Pricing Disparities: The significant price differences for the same drugs between the U.S.and Europe continue to be a point of contention, with the administration arguing that Americans are being unfairly overcharged.

Steel and Aluminum Tariffs (2018): Imposed tariffs on steel and aluminum imports from various countries, including Canada and the EU, citing national security concerns.

China Trade War (2018-2020): A series of escalating tariffs imposed on goods traded between the U.S. and China, impacting billions of dollars worth of products.

NAFTA Renegotiation (2018-2020): Led to the replacement of NAFTA with the United states-Mexico-Canada Agreement (USMCA), which included provisions related to pharmaceutical intellectual property.

Legal Challenges and Potential Outcomes

The legality of the tariffs is already being questioned by legal experts. Several pharmaceutical companies and trade organizations are expected to file lawsuits challenging the administration’s authority to impose such tariffs without congressional approval.

Potential Legal Arguments

Constitutional Authority: Opponents will likely argue that the tariffs exceed the president’s constitutional authority and require congressional authorization.

Administrative Procedure Act: Challenges may also be based on violations of the Administrative Procedure Act,which requires agencies to follow specific procedures when implementing new regulations.

International Trade Agreements: The tariffs could be challenged as violations of existing international trade agreements, such as those with the World Trade Institution (WTO).