Trump Escalates Global Tariffs Threatening Taiwan's Export Economy with Potential 30-35% Trade Barriers Ahead
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Trump Escalates Global Tariffs Threatening Taiwan's Export Economy with Potential 30-35% Trade Barriers Ahead
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In the past week, Trump shocked markets by announcing hefty new tariffs, with a 35 percent rate slapped on Canadian imports and 30 percent tariffs set for goods from Mexico and the European Union, effective August 1. These moves come on the heels of a July 9 deadline, now extended to August 1, meant to give countries time to strike deals and avoid the punitive rates. The White House hints there’s still room for negotiation before the tariffs take effect, but the threat looms large. According to Mega International Investment Services analyst Alex Huang, investors in Taiwan are watching anxiously, as the possibility of new tariffs on Taiwanese exports to the U.S. remains unresolved. Negotiations continue, but any breakthrough remains elusive, leaving markets jittery.
Taiwanese stocks reflected this anxiety today, with the Taiex index closing down 136 points, or 0.60 percent. The tech sector led the downturn, with semiconductor giants like TSMC and MediaTek both posting losses. As investors rotated funds into the petrochemical sector, concerns lingered about the fundamentals and Taiwan’s export-driven economy’s vulnerability to external shocks.
So far, Trump has not issued a new “tariff letter” directly to Taiwan, even though the island was hit with a 32 percent reciprocal tariff back in April. According to the South China Morning Post, Taiwanese officials have indicated that trade talks with Washington are at a pivotal moment, hoping to avoid being swept up in the new, harsher tariff wave. But nothing is guaranteed, and the U.S. has already made clear that it expects “reciprocity” from all major trading partners. For Taiwan, which relies heavily on exports to the U.S., the risk of steep new tariffs remains a real threat.
Globally, Trump’s aggressive tariff campaign is rewriting trade relationships. While his administration points to national security and job creation as justifications, analysts warn that further escalation could dampen investment and supply chains in Asia—and hit Taiwan particularly hard. A recent East Asia Forum analysis warned that if these tariffs stick, the impact could shrink regional GDP and employment rates.
As the August 1 deadline approaches, listeners can expect more headlines and market swings, especially for Taiwan’s high-tech exporters. That’s all for today on Taiwan Tariff News and Tracker. 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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