Taiwan Braces for Impact as Trump Imposes 20% Tariff Amid Ongoing Negotiations and Industry Adaptation
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Taiwan Braces for Impact as Trump Imposes 20% Tariff Amid Ongoing Negotiations and Industry Adaptation
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Taiwan’s cabinet says talks with Washington are ongoing to improve the new U.S. tariff regime on Taiwan-made goods after President Donald Trump imposed a 20% levy effective August 7. Vice Premier Cheng Li-chiun said the goal is a “better and more reasonable” rate and that negotiators are prepared to brief parliament on progress, according to Reuters. The Straits Times also reports those negotiations are continuing and the rate isn’t final.
Industry is already adjusting. Taiwan’s flagship bicycle makers, Giant and Merida, say the 20% U.S. tariff is now layered on top of existing MFN and sector duties, pushing effective bike tariffs to roughly 25.5%–31%, according to Taiwan’s Central News Agency. Giant has paused U.S. discount promotions, raised retail prices about 10% to offset costs, and is leaning on its diversified production footprint in China, Hungary, the Netherlands, and Vietnam to manage shipments. Merida says it will keep a flexible global shipment strategy and notes the U.S. market is a smaller slice of its portfolio, limiting near-term impact.
Chip headlines are front and center. The Straits Times reports relief in Taipei that Trump’s threatened 100% tariff on semiconductor imports hasn’t bitten yet because companies committing to make chips in the U.S. would be exempt. With TSMC pledging about US$165 billion to build six advanced fabs in Arizona, analysts say the company could be largely spared. But smaller Taiwanese chip suppliers may face pressure from big clients to shift capacity to U.S. soil to avoid duties, potentially draining investment from Taiwan and reshaping its role in the supply chain. Experts warn that higher chip tariffs would raise device prices and could depress electronics demand, adding uncertainty for Taiwan’s semiconductor ecosystem.
A broader tariff decision looms over global trade. ABC News says a 90-day pause on higher tariffs for China expires Tuesday, with no final word from President Trump on an extension. Washington has floated baseline tariffs around 50% on most products and additional duties tied to fentanyl enforcement; current imports from China face a 10% baseline plus a 20% fentanyl-related tariff on top, with some items higher. Any escalation would reverberate through supply chains that run through Taiwan, from chips to components.
One more note from TaiwanPlus News: officials emphasize the U.S. “reciprocal tariff” on most Taiwanese goods remains under negotiation and the 20% rate is not final, underscoring that this is a live, moving target.
That’s the latest on tariffs, Trump-era trade policy, and Taiwan’s positioning. Thanks for tuning in, and don’t forget to subscribe. This has been a quiet please production, for more check out quiet please dot ai.
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