Welcome to Taiwan Tariff News and Tracker. Today is October 26, 2025.
Taiwan continues to navigate a complex trade landscape with the United States following significant tariff developments earlier this year. On April 2, 2025, President Trump announced a 32 percent reciprocal tariff on Taiwanese goods but notably excluded semiconductor products, which represent Taiwan's primary exports. Taiwan's government called the tariffs unreasonable but chose not to retaliate, instead offering to increase imports from the United States and remove all tariffs on American goods.
The tariff announcement sparked domestic political tensions in Taiwan. The Kuomintang criticized President Lai Ching-te's policy of depending on the United States to counter China, calling the tariffs a heavy blow. Premier Cho Jung-tai responded by presenting an 88 billion New Taiwan dollar plan to stabilize the economy and support affected industries. According to the National Development Council, if tariffs were fully implemented, Taiwan's manufacturing sector would likely see a 5 percent drop in production value.
After months of negotiations, Trump announced on August 1 that a preliminary trade agreement had been reached with Taiwan. Under this agreement, a 20 percent reciprocal tariff would be imposed on Taiwanese goods exported to the United States, effective August 7. Taiwan's Office of Trade and Economic Affairs stated that further negotiations would continue. However, since Taiwan must also pay existing Most-Favored-Nation tariffs for each industry, the effective rate becomes 20 percent plus the additional industry-specific MFN rate. This structure could deal a severe blow to Taiwan's traditional industries, as well as its agricultural and fishery products.
The United States Trade Representative recently published details indicating that the United States and Taiwan agreed to a Framework for an Agreement on Reciprocal, Fair and Balanced Trade. Taiwan will provide preferential market access for US exports by removing tariffs on almost all goods, including food and agricultural products. The United States will maintain the 20 percent reciprocal tariff rate for imports from Taiwan while identifying certain products to receive a zero percent reciprocal tariff rate.
The American Chamber of Commerce in Taiwan has urged Washington to cancel import taxes on Taiwanese goods and called for further negotiations. Both sides continue working toward finalizing the agreement in the coming weeks.
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