US-Taiwan Trade Tensions Escalate: Tariffs Fluctuate Between 10% and 32% as Negotiations Continue
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US-Taiwan Trade Tensions Escalate: Tariffs Fluctuate Between 10% and 32% as Negotiations Continue
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The big headline this week continues to be the rapid and dramatic shifts in US tariff policy, spearheaded by President Trump. Just over a month ago, on April 2, the Trump administration stunned global markets by announcing a massive 32 percent tariff on all imports from Taiwan. This announcement triggered major losses on Taiwan’s stock exchange and created global economic uncertainty. However, just a week later, the administration walked back these sweeping measures, lowering the Taiwan tariff to 10 percent for a 90-day period to allow space for negotiations, as reported by the Global Taiwan Institute and confirmed by multiple government sources.
Currently, as of May 2025, nearly all imports from Taiwan to the United States are subject to a flat 10 percent tariff along with most other countries. According to the Trade Compliance Resource Hub and Passport Global, this new 10 percent rate is set to last at least through early July, unless a country-specific deal is struck. President Trump’s original 32 percent tariff was higher than the 24 percent applied to Japan and the 25 percent for South Korea, underscoring Taiwan’s particular position in these negotiations.
Some crucial exceptions exist: computers, cell phones, and, most importantly for Taiwan, semiconductor products are not included in these new tariffs. These are the backbone of Taiwan’s export economy, which may soften the blow for some sectors. Nonetheless, Taiwan’s government, under Premier Cho Jung-tai, has called the 32 percent scenario “extremely high” and outlined an $88 billion New Taiwan Dollar (roughly $2.7 billion US) support package to shield its industries should tariffs return to those peak levels.
President William Lai of Taiwan has been vocal about the importance of securing a tailored trade deal with the United States, recently publishing an op-ed in Bloomberg Opinion to lay out a roadmap for deeper US-Taiwan trade ties. However, negotiators from Taipei face a tough challenge. As the Global Taiwan Institute notes, it’s still unclear exactly what the Trump administration wants, with “America First” remaining the guiding principle. Some believe the US seeks a trade relationship that disproportionately favors American interests, and opposition parties in Taiwan have criticized the government’s preparedness and response.
Meanwhile, the Trump administration has suggested that greater commitments from Taiwan—including more US imports and reductions on American goods tariffs—might be needed to reach a deal. The shifting policies and headline-grabbing tariffs underline the volatility and strategic importance of US-Taiwan relations, leaving government officials and industry leaders in Taiwan bracing for further changes.
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