『Trump Imposes 20 Percent Tariff on Taiwan Exports Amid Ongoing Trade Tensions and Strategic Uncertainty』のカバーアート

Trump Imposes 20 Percent Tariff on Taiwan Exports Amid Ongoing Trade Tensions and Strategic Uncertainty

Trump Imposes 20 Percent Tariff on Taiwan Exports Amid Ongoing Trade Tensions and Strategic Uncertainty

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 Listeners, here’s the latest on Taiwan tariffs and the Trump administration’s trade moves as of September 2025. The big headline: President Donald Trump announced a new “reciprocal tariff” of 32 percent on Taiwan’s exports to the U.S. back in April, though crucially, this excluded semiconductor products—Taiwan’s biggest export sector. Trump had repeatedly criticized Taiwan for dominating the global chip industry and, according to the Financial Times, for “not spending enough on its own defense.” The government in Taipei described the new rates as unreasonable but resisted retaliating, instead offering to boost American imports and drop tariffs on U.S. goods. This marked a major test for Taiwan’s economic policy and its strategic reliance on the United States.

This spring, Taiwan’s government quickly assessed the hit to its economy. Taiwan’s Premier Cho Jung-tai convened cross-party legislative leaders and revealed that up to NT$88 billion in support had been earmarked to stabilize affected industries and help cushion the economic blow. The government also developed plans to expedite budget reviews, ensure macroeconomic stability, and support key sectors.

The tariffs have worsened anxieties about U.S. support for Taiwan, especially given the Trump administration’s unpredictable diplomatic style and the influence of isolationist voices in Washington. Taiwan’s main opposition party, the Kuomintang, has slammed President Lai Ching-te’s administration, arguing that heavy reliance on the U.S. has left Taiwan vulnerable.

After months of negotiation, the American Chamber of Commerce in Taiwan publicly urged Washington to cancel the tariffs, describing them as damaging to industries on both sides. However, the result was a new deal: on August 1, President Trump and Taiwan’s Office of Trade and Economic Affairs announced a “preliminary trade agreement.” Under this deal, a 20 percent reciprocal tariff would now apply to most Taiwanese goods shipped to America, with the measure taking effect August 7. But here’s an important detail: Taiwan must also pay the existing Most-Favored-Nation (MFN) tariff rates on top of this 20 percent, so the actual cost is “20 percent plus N.” Agriculture, fisheries, and traditional Taiwanese industries are expected to feel the greatest impact. The National Development Council warned that if the full 32 percent tariff scenario were restored, Taiwan’s manufacturing output could fall by up to 5 percent.

Meanwhile, U.S.-Taiwan relations remain tense but functional, with behind-the-scenes defense talks held in Alaska last week. The U.S. is keeping ties alive while continuing to seek a summit and better trade terms with China, causing unease in Taipei about the reliability of American support in a crisis.

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