Welcome to Taiwan Tariff News and Tracker. Today is November 2, 2025, and we’re bringing listeners the latest on US-Taiwan tariffs and all the key headlines.
The dominant story remains Washington’s imposition earlier this year of a 32 percent reciprocal tariff on most Taiwanese exports, a move announced by President Trump in April and described by President Lai as a “major challenge” for Taiwan’s economy. However, the tariff notably excludes semiconductors, which are Taiwan’s chief export to the US and crucial to American tech and AI ambitions. According to President Lai, these tariffs reflect the Trump administration’s focus on addressing the US fiscal deficit and its strategy to reindustrialize and secure advanced supply chains. Instead of confrontation, Lai has said Taiwan aims to negotiate, seeking to reduce tariffs through new trade agreements, and pursuing collaborative investment and procurement initiatives designed to ease the trade deficit and reinforce US-Taiwan cooperation.
The 32 percent tariff increase stands in sharp contrast to the Trump administration’s more lenient 10 percent tariff on Chinese goods and exemptions for USMCA partners, but it follows increasing rhetoric from Trump and his advisors about alleged “unfair dominance” by Taiwan in the semiconductor sector and calls for Taiwan to spend more on its own defense. In response, Taiwan’s government has introduced NT$93 billion in support for affected industries, plus a broader NT$410 billion long-term development budget that targets areas like employment, livelihood protection, and economic resilience. The government is also encouraging outbound investment, especially in North America, as Taiwan pivots to reduce dependence on China — whose share of Taiwanese exports dropped from nearly 44 percent in 2020 to about 32 percent in 2024.
Industry impact has been immediate yet nuanced. The Taiwan Institute of Economic Research reports September manufacturing sentiment rebounding to pre-tariff levels as New Taiwan dollar depreciation and expectations of US rate cuts have eased some pessimism. The tech sector, still buoyed by strong AI and electronics demand, is maintaining growth momentum, though negotiations between Taipei and Washington on lowering the new tariff rates remain at a standstill.
Meanwhile, at the APEC summit in South Korea last week, Taiwan’s representative Lin Hsin-i met with US Treasury Secretary Scott Bessent to discuss technology, supply chain security, and the future of chip industry cooperation. US officials were reportedly keen to listen to Taiwan’s strategic approach to building its semiconductor ecosystem. Lin confirmed that, with the semiconductor sector largely carved out from the new tariffs, broader exports remain subject to a 20 percent rate for now as talks continue.
In the wider region, Trump’s heavy tariffs and shifting alliances have accelerated realignment. Tokyo, Seoul, and Beijing are intensifying regional talks aimed at stability, while US-Taiwan ties are increasingly defined by high-stakes tech and defense interests. The broader trade environment remains uncertain, but the message from Taipei is one of resilience, adaptation, and determination to turn tariff challenges into new opportunities.
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