TAIPEI, Aug. 1 (Xinhua) -- Taiwan's financial markets on Friday experienced immediate turmoil following the U.S. government's announcement of a 20 percent tariff on goods imported from the island.

The Taiwan Stock Exchange opened lower than the previous day, and ended the day down 108.14 points at 23,434.38. The new Taiwan dollar weakened past the key 30-to-1 threshold against the U.S. dollar.

The latest announced rate exceeds the 15 percent rate applied to key regional competitors such as Japan and Republic of Korea, sparking criticism from within Taiwan's business community.

The island's Democratic Progressive Party (DPP) authorities previously claimed they had held several rounds of formal negotiations with Washington. The announced 20 percent rate, however, has left many in Taiwan disappointed and concerned about its potential impact on exports and the broader economy.

Lin Por-fong, chairman of the influential Third Wednesday Club, warned that the tariff will severely damage Taiwan's global competitiveness. He urged the DPP authorities to promptly roll out effective policies to stabilize the economy, and to disclose the full details of agreements with the United States to determine whether additional conditions are attached.

Eric Chu, chairman of the Chinese Kuomintang (KMT) party, echoed those concerns, describing the tariff as a "significant threat to Taiwan's export industries."

"The lack of a strategic roadmap from authorities has forced businesses to operate blindly, shaking these industries' confidence and undermining Taiwan's competitive edge," Chu said.

In response, the DPP authorities alleged that as the two sides have yet to conclude a final review meeting, the 20 percent tariff is still temporary, with hopes of a reduction pending a future agreement.

Yet analysts remain skeptical. Hsieh Chih-chuan, a current affairs commentator in Taiwan, questioned who ultimately controls the definition of "temporary tariff." With no joint statement published to date, he warned that Taiwan may be facing undisclosed additional obligations, such as large-scale investments in the U.S.

Unless more details are released, the situation for Taiwan's industries -- especially small businesses in central and southern Taiwan -- will only grow more precarious, Hsieh said. Enditem