Today on Taiwan Tariff News and Tracker, we’re zeroing in on the latest developments in U.S. trade policy under President Trump and what it all means for Taiwan—especially as tariffs continue to shape global supply chains and the economic relationship between Taipei and Washington.
Headlining the week is President Trump’s announcement that tariffs on China could shoot up to 155% if an agreement isn’t reached by November 1st this year. According to Flexport, the White House is considering a sweeping 100% tariff hike on top of existing duties, affecting a broad swath of Chinese imports and further pressuring the Asia-Pacific trade ecosystem. This sharp pivot comes as a national security tactic, aiming to protect American manufacturing, with particular weight placed on critical sectors like heavy trucks and pharmaceuticals—unless companies move manufacturing stateside, in which case some exemptions kick in.
While attention is focused on China, listeners in Taiwan should pay close attention to how the new U.S. tariffs are shifting global trade patterns. The Economic Times reports that between April and July of 2025, the U.S. actually saw a steep rise in its trade deficit with Taiwan—jumping from 22 billion dollars to 48 billion dollars—even as the overall national deficit shrank. This suggests that while tariffs may be reducing direct reliance on China, the U.S. is now turning to partners like Taiwan, Vietnam, and Mexico to fill supply chain gaps. In July, Taiwan cemented its role as a major U.S. trade partner, contributing to the growing deficit as American companies diversify away from mainland suppliers.
On the eve of a critical summit between President Trump and China’s President Xi Jinping, Taiwan’s security and trade future are reportedly front and center alongside global tariff policy, according to Interaksyon. With trade and Taiwan still at the top of the agenda six years after the last such summit, these negotiations could have ripple effects throughout the Taiwanese tech and manufacturing sectors.
Meanwhile, customs revenue has soared with the implementation of these elevated duties, with EFG International putting the effective U.S. tariff rate at nearly 12% by the second quarter of 2025, up dramatically from 1.6% in early 2018. This rapid escalation speaks to the scale of trade disruptions faced by all U.S. partners, including Taiwan.
That’s all for today’s episode of Taiwan Tariff News and Tracker. Thank you for tuning in, and don’t forget to subscribe so you never miss an update on how changing U.S. policies are shaping Taiwan’s economic future. This has been a quiet please production, for more check out quiet please dot ai.
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