Welcome to Taiwan Tariff News and Tracker. Today is October 27, 2025.
On April 2, 2025, President Trump announced a significant change in US trade policy by imposing a 32 percent reciprocal tariff on Taiwanese goods, with the exception of semiconductor products, which are the backbone of Taiwan’s exports. Taiwan’s government swiftly called these tariffs unreasonable but chose the path of negotiation over retaliation, offering to increase imports from the United States and remove all tariffs on American goods to defuse tensions, as reported by Spreaker.
The announcement ignited heated debate in Taiwan’s political sphere. The Kuomintang party attacked President Lai Ching-te’s alignment with the US, warning the tariffs could be a major setback for Taiwan’s economy. Premier Cho Jung-tai responded by unveiling an 88 billion New Taiwan dollar rescue initiative to shore up the economy and protect impacted industries. According to the National Development Council’s analysis, a full implementation of the new tariffs could push Taiwan’s manufacturing output down by as much as 5 percent.
After several months of complicated negotiation, a preliminary trade deal was reached on August 1, 2025, resulting in a reduction of the reciprocal tariff to 20 percent for Taiwanese goods entering the US, with this rate taking effect on August 7. Taiwanese officials say negotiations are continuing, as the deal stipulates that Taiwan must still pay the existing Most-Favored-Nation tariff applicable to each sector, meaning many goods will face a tariff total of 20 percent plus the industry-specific MFN rate. This hits Taiwan’s traditional industries and agricultural producers especially hard.
In response, Taiwan launched a NT$46 billion (about US$1.5 billion) relief program to help industries suffering from the increased tariffs, according to DigiTimes. The information and electronics sector, which makes up over 70 percent of Taiwan’s exports, is less affected, thanks to the exclusion of semiconductors from the tariff list.
On the diplomatic front, the American Chamber of Commerce in Taiwan has publicly urged US authorities to reconsider and lift tariffs on Taiwanese goods, emphasizing the mutual benefits of fair market access. Both governments are working towards a finalized agreement that would see Taiwan dropping tariffs on almost all American products, including agricultural and food goods, while the US continues to maintain the 20 percent reciprocal rate but may identify some products for zero tariffs under the new framework.
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