US Imposes 20% Tariffs on Taiwan Imports, Threatening Tech Supply Chain and Bilateral Trade Relations
Failed to add items
Sorry, we are unable to add the item because your shopping cart is already at capacity.
Add to basket failed.
Please try again later
Add to Wish List failed.
Please try again later
Remove from Wish List failed.
Please try again later
Follow podcast failed
Unfollow podcast failed
US Imposes 20% Tariffs on Taiwan Imports, Threatening Tech Supply Chain and Bilateral Trade Relations
-
Narrated by:
-
By:
About this listen
The Trump administration’s new tariff structure took effect this month, and as reported by the Global Taiwan Institute, a 20 percent reciprocal tariff rate is now being applied to nearly all imports from Taiwan, with only a handful of sectoral exemptions. These new tariffs were announced on July 31 and mark a significant departure from the previous landscape, where many Taiwanese goods received preferential or *de minimis* tariff treatment. Items such as automobiles and metals remain subject to even higher rates, while strategic sectors like semiconductors and personal electronics retain critical exemptions — at least for now.
This 20 percent rate is notably higher than the reciprocal rates currently set for Japan and South Korea, which both negotiated 15 percent with Washington. According to Taiwan’s Vice Premier Cheng Li-chiun, negotiations with the United States remain ongoing. Speaking to press in Taipei, Cheng explained that Taiwan is determined to seek a more reasonable, lower tariff and relief from so-called tariff stacking. The vice premier was clear: Taiwan’s industrial and agricultural exports are burdened not just by the baseline 20 percent, but also by existing most-favored nation duties, which average 3.1 percent for industry and five percent for agriculture.
Taiwan’s drive for relief comes as the US trade imbalance with Taiwan grows, driven in large part by American demand for Taiwanese semiconductors. The two sides have deep interdependence in the high-tech supply chain, and this tariff hike threatens longstanding arrangements. Policy analysts warn these new tariffs put Taiwanese small and medium-sized exporters at a steep cost disadvantage against their regional competitors. They also note that President Trump has threatened much higher tariffs — up to 100 percent — on semiconductors if a new deal is not reached soon. Arisa Liu, a researcher at the Taiwan Institute of Economic Research, said that these moves threaten to push more semiconductor production overseas, raising consumer costs and creating broader market uncertainty.
Globally, Trump’s “Liberation Day” tariff program has faced legal and diplomatic turbulence. The executive orders invoking the International Emergency Economic Powers Act and introducing so-called reciprocal tariffs—like that 20 percent for Taiwan—have drawn criticism from economists and trade partners alike for exceeding actual foreign tariff levels. The policy has prompted court challenges and sharp trade responses around the world.
Taiwan’s government has responded with targeted relief for affected industries, offering support for companies in machine tools, heavy electrical, plastics, and related sectors to upgrade technology and seek new export markets. The final details of any agreement or further relief will go before Taiwan’s Legislature, ensuring transparency and legislative oversight as talks continue.
Listeners, the negotiation table is still in flux, and the coming weeks will be critical for both Taiwan’s exporters and US importers. We’ll continue to track every announcement and legal twist.
Thank you for tuning in to Taiwan Tariff News and Tracker. Don’t forget to subscribe for ongoing updates. This has been a Quiet Please production, for more check out quiet please dot ai.
For more check out https://www.quietperiodplease.com/
Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q
No reviews yet
In the spirit of reconciliation, Audible acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.