Listeners, welcome to Taiwan Tariff News and Tracker. On Monday, October 13, 2025, the global trade landscape is being dramatically reshaped by ongoing tariff policies from the United States, with former President Donald Trump at the center of recent developments.
Over the past year, the United States has seen its average tariff rates soar from 2.2 percent in January to 8.9 percent by June 2025, according to Caixin Global. U.S. tariff revenue hit a record $144.4 billion between January and August, which is nearly triple the figure from the same period last year. These sharp increases are the result of expanded “reciprocal tariffs,” “Section 232 tariffs,” and new policies from Trump’s second administration. While much of the attention has focused on China, Taiwan is now directly in the spotlight.
On April 2, 2025, Donald Trump announced a "reciprocal tariff" of 32 percent on most Taiwanese goods. There’s an important exception: Taiwan’s essential semiconductor exports remain exempt from these new tariffs. Trump justified the move by arguing that Taiwan benefits too much from its dominance in high-tech chips while, in his view, not contributing sufficiently to its own defense spending. The response from Taiwan was swift but measured. Its government called the tariffs “unreasonable” but opted not to retaliate, instead proposing increased imports of U.S. goods as a sign of goodwill. Taiwan also removed all tariffs on American products in a bid to ease tensions.
These tariffs have caused a wave of anxiety within Taiwan’s business and political communities. The opposition Kuomintang party sharply criticized President Lai Ching-te’s administration, calling it unprepared for this kind of economic hit. Premier Cho Jung-tai held emergency talks with legislators to devise a plan totaling NT$88 billion aimed at supporting industries and stabilizing the economy during this challenging period. Kao Shien-quey, deputy head of Taiwan’s National Development Council, warned that fully imposed tariffs could reduce the manufacturing sector’s production value by 5 percent.
Negotiations between the U.S. and Taiwan have been ongoing throughout the spring and summer. After two rounds of talks, a preliminary agreement was reached in August. That deal imposes a 20 percent reciprocal tariff on Taiwanese goods entering the U.S. as of August 7, in addition to pre-existing Most-Favored-Nation tariffs for each industry. Taiwan’s crucial semiconductors remain unaffected for now, but traditional sectors—especially agriculture and fisheries—are bracing for serious impact.
The American Chamber of Commerce in Taiwan has urged Washington to drop these import taxes, warning of long-term damage to bilateral economic ties. For listeners tracking headlines, it’s clear that while negotiations are ongoing, the threat of additional rounds of tariffs remains.
In summary, as of October 2025, a 20 percent reciprocal tariff applies to most Taiwanese exports to the U.S., with semiconductors exempt but other industries feeling the heat. Listeners should keep an eye on Washington and Taipei as further negotiations are expected to continue shaping U.S.-Taiwan economic ties.
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